There you were happily listening to your car radio and thinking happy thoughts about Motorola when a stock market accident occurred and you lost a lot of money in the stock.
Well, you shouldn’t have been long anyway, and if you are into reversing you should have been short.
Of course this assumes you are conversant with the Basing Point method. (If you’re not you can read the 9th edition and get the StairStops book.)
First of all the double top here should have rung alarm bells in your head. Second of all, if you had been following the market with Basing Point generated stops you would have seen the Basing Point marked BP and calculated the stop indicated at 7.47 with a 5% filter. Of technical and theoretical interest here is the fact that the BP generated stop is freakily close to the stop which would be generated from pure chart reading. That stop would be generated as a 3% penetration of the double top neckline.
Then you would not have had the unpleasant experience of what my graduate students call “the gap of death”.
Can you short this now? Should have done on the gap, but worth a whirl.
By the way, where are you going to stop the short sale?
How about 3% over today’s high?