WYNN VCP pattern 3C

gravitar easyguru - 1:42PM May 11
Why do these patterns form see attachment

Attachments

Comments

  • gravitar
    WoolySpaghetti commented on August 16, 2018

    Old but but no answer, do you have anything to add to this guru?

    The cup part of the formation is created when profit taking sets in or the market itself is in a correction and the stock sells off and forms the left side of the cup. The cup bottom is formed when the stock finally runs out of sellers at new low prices and buyers start moving in and bidding the stock back up again as sellers demand higher prices to turn the stock over. Most of the time as the stock emerges out of the right side of the cup in an uptrend it fails and meets resistance the first time it tries to break out to new high prices and the pattern forms a handle. The second run at new highs usually works as the sellers have been worked through and the stock breaks out to new highs.

    This pattern sets the stage for very nice up trends because the majority of short term traders sold as the stock fell into the cup, the bottom was formed when the holders of the stock refused to sell for less than the support level in the base of the cup, then profit takers were worked through as the stock came up through the right side of the cup. The investors and traders that sold at new highs the first time that price level was reached coming out of the cup were the last group of sellers to overcome as the stock breaks out of the pattern the second time it is a lack of sellers that propels the stock upwards as seats on the bull bus get more expensive because no one wants to give up their seat at that point in time.

  • gravitar
    easyguru commented on August 16, 2018

    obviously in retrospect the pattern was faulty.

    the vcp pattern is formed due to buying pressure from large funds. They buy on any small dip . The accumulation of position is many months or weeks. The stocks breaks out once the fund hzs built its position.

  • gravitar
    markhike commented on August 16, 2018

    The stock hit resistance at $200 psychological level even though it is VCP. Small positions can be built inside the cups/handle to create a cushion for b/o buy. When it failed, get out with small profit/loss.

Archives

Tags

Categories