Wednesday, March 11, 2009

Bearish Tower Top Reversal Pattern - Amgen, Inc. (Public, NASDAQ:AMGN)

Steve Nison on Tower Tops (TT):

The TT unfolds at high price levels. During a rally there's a lull after one or more green candles. Then one or more red candles emerge. This creates a top with green and red tower on either side smaller sticks. So WRBs on the way up and on the way down. The opposite of TT is the tower bottom.

AMGN rallied up to the RH from last week, carved out a tower top reversal pattern. Short as price breaks support. The characteristics of the TT pattern usually result in a fast move.

CELG was a sympathy play.

JOYG carved out a TT at the 50% FE of the PDL to the PDH. BUCY was the sympathy play.

B&B long on AMZN 1:30 15 min. bar failed. Markets were somewhat extended after yesterday's big move.

5 comments:

Golden Bear said...

Hi Jamie,

On the AMGN trade, did you drop to 1min timeframe to find entry considering how big the bar is on 15min? I continue to be amazed by not only your knowledge of candlestick patterns but more importantly your ability to apply them. Thanks.

Best,

Golden Bear

Jamie said...

Thanks GB,

Yes, I have multiple timeframes (1,5,15, and daily) on the screen of the stocks I'm setting up to trade. The cross confirmation helps minimize trading stocks with underlying choppiness on the lower timeframes. A choppy setup usually results in a choppy trade.

bl said...

Nice trades/exclamation. The drug deliveries,neg news,got hammered today: abc cvh mck esrx mds=nice sliders. Gold down yesterday and up today. Nice r/t. WHR short -5/10and stopped out for loss..if I had just waited.

Jamie said...

BL,

WHR - That's a bearish tweezer and TT at full extension of PDL to PDH. You must have anticipated and entered before the 5th bar low was taken out.

Sally said...

Jamie, I went to DAY tRADE SITE AND THEY'RE CLOSING, SADLY. DO YOU SUGGEST ANOTHER SOURCE.? THANK YOU SALLY ROSE. I8'VE BEEN FOLLOWING AND HAVE STARTED TO USEESIGNAL, SO I', AT A LEARNING STAGE. YOUR ANALYSISD IS VERY CLEAR AND THOROUGH. AND I'M VERY SERIOUS AT LEARNING YOUR SYSTEM. THANK YOU FOR YOUR CONTRIBUTION. SALLY ROSE