Posted on August 13th, 2008 at 09:37 AM
There is a question in the comment section on RIMM :
With RIMM (RIMM), now that we have got a blue XTL & price is trading above the .618 retracement level (using the June high to July low) is the previous short trade idea negated?
First, I am not worried about the XTL blue bars. I am not trading RIMM based on the XTL breakout or breakdown. I am trading it based on the stochastic.
RIMM still meets the rules of the stochastic trade. It pulled back to .618 but there is not a full line outside of the .618. For the market to pull back too much, there needs to be a full line outside of .618. With RIMM we do not have that. Therefore, this is a valid stochastic sell and the stop is just above the high on 8-11 at $135.
Joel Stahl
Additional Resources:
Join us at a FREE online seminar for Advanced GET.
Check out the entire feature list for Advanced GET.
