drbubb Posted July 2, 2013 Report Share Posted July 2, 2013 "Widening Mouth" technical pattern - Example here Well, this book fills in the missing jigsaw piece now. I don't know who exactly wrote this book. Was it Jesse Livermore interviewed by Flumiani? Did Jesse Livermore scribble down those notes and draw those pictures? We'll never know until I can get hold of the first 21 pages. But what is important is the information, that we have. Additionally what the R.Smitten books don't say is to concentrate on one group at a time. Look at my pivotal points chart of how I interpreted it, further up this thread, and now take a look at what is in the book..... LEFT CHART - If you take 50, 60, 70, 80, 90 as pivotal points that chart is tradable. The author stresses that volume is important. At the bottom of the chart is the volume. Volume rises when the price rises, and volume falls back on a pull back. After a top point number 10, volume behaves differently, which gives us a clue - never catch a bottom. The price falls, and the volume is high! Going back, at point number 7 the author writes about the price falling back to 59 - this is still a normal reaction - and I believe if you want to stay in the trend, your stop should be safely raised to 58 assuming that the 60 area is to hold and cleared at point 6. The stop is NOT 59! You will be stopped out! ---- Peter Brandt has also used this chart - http://peterlbrandt....go-short-apple/ What I disagree with is the "number counts", I believe they were used to illustrate what was happening, and not that every chart will go through 15 "elliot-type-esq" waves. However he was correct in calling the intermediate top of Apple AT $650 ( BUT it powered on to $700). I need to save this comment from that article here for now, as this is an important clue; AAPL $613 Mr Guru • a year ago Would Livermore short? No. Livermore said when a stock first breaks a multiple of 100, it will continue to the next 40 - 60 level. Just broke 600 ... this ain't the time to short. Check again at 640. Link to comment Share on other sites More sharing options...
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