Resurecting Freddy
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     hershy
Member
Username: hershy
Post Number: 2305
Registered: 10-2002
Rating: N/A
Votes: 0
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| | Friday, June 05, 2009 - 07:03 am: |  
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Lots of charts showing lots of swings. Ideal time for Blind Freddy set ups.
For those that don't know what that it, a swing low that respects a previous swing high.
With a gap so visible that even Blind Freddie could see it !
A few that qualify:
CDU, CEY, CLU, Map.
And many others but more importantly, many set ups for a successful BF reversal/
I do it doji style !
http://members.optusnet.com.au/~hershy/
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jimmyswell
Member
Username: jimmyswell
Post Number: 319
Registered: 07-2006Rating: N/A
Votes: 0
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| | Friday, June 05, 2009 - 01:24 pm: |
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Does the indicated gap qualify as a Blind Freddie?
Coal of Africa was an equity I was tracking about a year ago and then lost interest until the DIs crossed in early April 09.
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hershy
Member
Username: hershy
Post Number: 2306
Registered: 10-2002
Rating: N/A
Votes: 0
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| | Monday, June 08, 2009 - 06:24 pm: |
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Hi Jimmy
Was away for the weekend, sorry for the tardy reply.
Two schools of thought on Blind Freddy. The purists say the swing low must not reach lower than the swing high. The revisionists say that respecting the swing high is sufficient.
My belief is the larger the gap, the more easy it is Blind Freddy to see it, hence the more likely hood the next up swing will be a strong one.
In your example of CZA the swing low @ $1.71 left a clear gap above the swing high @ $1.695. The new swing up produced a gain of 17.64%
The worry here is that there is now an open window below the present levels causing a draught that may suck the price action below the previous swing high. Very clearly seen in the equivolume chart.
But I think the idea is to be on the lookout for BF possibilities. For example have a look at the chart for IOF.
The last swing high was @ 47. IOF is trading above that level and the last trading day produced a bearish candle. This is not guarantee that the price will continue to drop but it is likely that it could drop. If the next swing low produced ( and you won't know this until a day after) is higher that .47, one could reasonable expect a new bullish swing that could be as long as the last bullish swing - or even .618% longer. So if the swing high is respected, one could expect the next up swing to be between say 30 and 48 cents. So if the next swing low is around 48 cents one could expect as much as a 100% gain. In a perfect world that is - which this is far from being.
I do it doji style !
http://members.optusnet.com.au/~hershy/
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hershy
Member
Username: hershy
Post Number: 2307
Registered: 10-2002
Rating: N/A
Votes: 0
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| | Monday, June 08, 2009 - 07:39 pm: |
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Here's a good example, DUI.
Swing high @ $2.36, swing low @ $ 2.44,a reasonable gap of
8 cents. The last bullish swing went from $2.05 to $2.59. Although earlier I said that one could expect the next swing to be of the same length here I will contradict myself. On this chart, the last swing was an Elliot wave 3 which is the longest, or at least not the shortest of the waves and even though it was not as long as it should have been, it is unlikely, though not impossible that the next impulsive wave will be as long. I would expect the present wave to reach close to $2.90. as it would probably be the same length as the first wave
(Message edited by Hershy on June 08, 2009)
I do it doji style !
http://members.optusnet.com.au/~hershy/
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