Bar Chart Analysis
linear regression lower band support. We see the Hikkake pattern forming on high
volume, representing a selling climax in the stock. Note that stochastics is also in
an oversold condition.William’s Oops entry
Figure 7.36 depicts an example of Larry William’s Oops Entry approach consisting
of a bar opening beyond the range of the previous bar. A sellstop entry order is
placed at the high of the previous bar if the new bar opens above the previous
bar’s high. A stoploss is placed at the new bar’s high. Similarly, a buystop entry
order is placed at the low of the previous bar if the new bar opens below the pre-
vious bar’s low. A stoploss is placed at the new bar’s low. In both cases, if price
reverses, a stop and reverse order is initiated at the stoploss levels. We may also
look to Japanese candlestick morning and evening start formations, including the
piercing line and dark cloud cover candlestick patterns, to find patterns conducive
to Larry William’s Oops setup. It is best to look for a bullish Oops pattern in an
uptrend and a bearish Oops pattern in a downtrend. Refer to Larry’s book How I
Made One Million Dollars Trading Commodities for more details.
In Figure 7.37, we see a bearish Oops pattern on the daily chart of Dynegy Inc.Figure 7.36 Bullish and Bearish William’s Oops Entry Pattern.Figure 7.37 Bearish Oops Entry Pattern on the Daily Chart of Dynegy Inc.
Courtesy of Stockcharts.com