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Strong Point Module: Riding Big Winners


2GO
03/17/2017 – 04/03/2017
































The stock broke out from a its Darvas Box that came from a recent 6 Months Boss Breakout with an immediate
52 week high Resistance break. As seen on the Picture the breakout is accompanied with a Parabolic RSI, with a
minion present. 4th Test of the 38.2 Big ifib. Usually it takes a 3-4 test before a big move reaction to break big
resistance


Possible scenarios are to be considered:
1. A Confirmation +Validation
2. Bulltrap +RSI Resistance
3. Runner Breakout with a Darvas TP lock.


Due to having an RSI Resistance observation its best to wait for the Confirmation and Validation candles to have
a Safer Risk Reward.





Scenario one took place.

Confirmation and Validation

The first red candle confirms the Breakout point making 8.40 the valid breakout point / Trigger / BUY for
Validation. And having that a strict -5flucs 8.34 level our Stop given that the previous bo point will not be
invalidated with a Bulltrap candle or a close below 8.29

Note that 52 week high break can trigger a good Run up



Validation Breakout. Follow Strict Stop loss if confirmed. If followed through adjust Trail Stop accordingl




Having an 8.75 close. There are two possible scenarios an RSI resistance sell day or a test of the MYH point.
It is given that the stock came from a recent RSI minion depicts a bullish Momentum in place.

Best to maintain a Trail stop having a confluence or Support of the Previous 52week high breakout point. Look
to see the effect of the MYH BO point. Adjust and React Accordingly.



It’s a must to always look at the Bigger Scale / Picture of the chart.
Plot the Big iFib to see potential Key reaction points as well. In the case of the above picture the stock opened
below the 61.8 ifib indicating that the stock might have reacted to a major Resistance point.

Best to Stick with the plan and see if STOP is hit.

Then the unexpected happened….


in this scenario… during the 66% runup from the previous close anything above 15% form the previous close is
a Ceiling play. Shift to the 3 minute chart and manage accordingly. Same selling rules in minutes runup



Daily Trail Stop hit and Lock in Hit.

Best to React via minutes chart due to volatility.

React accordingly and manage expectations.