MINOLA as I termed it is a combination of the VCP(Volatility Contraction pattern) strategy of Minervine, Pocket Pivot of William O'Neil and the ADX(14) of Larry Williams.
Last Oct. 30, 2018 NEO had just made this new high triggering a MINOLA move. See our entry on NEO hitting MINOLA.
It took almost 2 months for the entry to get hit around Dec. 20, 2018 followed with 2 more lower candles hitting as low as $11.03. The 1st 3 days you would have been at a loss but on the 4th day, Dec. 26, 2018 the price went as high as 11.96. Jan 9, 2019 the price made a gap-up reaching the high of $15.12 and going forward it reached beyond $18.00. The high of $18.00 was our target since this was the previous high.
Entering at 11.75 and hitting the target of $18.00 gained $6.25 profit. Multiplying it to 1,000 shares it translated to $6,250 in 2 months.
Last Oct. 30, 2018 NEO had just made this new high triggering a MINOLA move. See our entry on NEO hitting MINOLA.
NEO Chart from Stockfetcher.com
OBSERVATIONS:
- As you can see the price candle had reached the top channel of the trend (upper blue inclined line). Some stocks, upon reaching this kind of top channel would eventually break it and then form a new channel above the previous channel. In this case, it was quite different.
- Notice also, that the volume of the empty red candle with a gap down (candle inside the red circle having the tallest red volume) was so huge compared to the volume of the bull candle hitting the New MINOLA day (candle with letter "N" on top).
- The bottom of the red empty candle with a huge red volume is practically at the same level with the long red empty candle on the left with volume 1/4 of the tallest red volume.
- If you scribe a line (a red line) on top of the volume on our MINOLA day candle the volume hit by that line is only the huge red volume (using stockfetcher.com chart). You can use the bottom of the red empty candle as entry, which is around $12.00.
- If you continue scribing the line past the tallest red candle, the next bull candle with volume touching the blue line slightly above the mid height of the MINOLA day volume has a low of the day around $11.63. In between $12.00 and $11.63 the best entry would be around $11.75.
It took almost 2 months for the entry to get hit around Dec. 20, 2018 followed with 2 more lower candles hitting as low as $11.03. The 1st 3 days you would have been at a loss but on the 4th day, Dec. 26, 2018 the price went as high as 11.96. Jan 9, 2019 the price made a gap-up reaching the high of $15.12 and going forward it reached beyond $18.00. The high of $18.00 was our target since this was the previous high.
Entering at 11.75 and hitting the target of $18.00 gained $6.25 profit. Multiplying it to 1,000 shares it translated to $6,250 in 2 months.
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