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So how do you play these? You don't just play all that are down in pre-market, right? Is this one that you are playing, or are just pointing it out?
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PCOLA, on this particular one I would look for some type of a pullback. Then using my moving average bands. I would make my decision to go short.
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Ok, and you're using pullback in the opposite sense how it usually is used, right? I.e., if it opens down 30% and "pulls back" to only be down 20%, you may short it at that point?
Thanks for the help in understanding it.
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Also, Scottrade shows 188K in volume, is that not correct, or did you relax your 200K in volume rule, or is it $200K in dollar volume?
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At this time its playing around with the bottom band of my moving average band indicator. If it drops below it for two bars it should go on now.
According to the Bollinger band at this point time. You could have a chance.
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Still playing around with the moving average band. No indication which way it will move yet, if it gets in between the two bands. Then we could have a sideways holding pattern. But that's not the case at this time. I am using a five-minute chart.
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I would start watching this very closely the top of the Bollinger band has turned down. I have seen cases when this happens, this particular down leg is over. That's not to say that it will not continue to go to. On another down leg. The last bar has close higher than the previous bar. If the next bar closes higher than this bar . I would give it very close scrutiny.
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The bottom of the Bollinger band has just turned up. With the top turndown and coming down rapidly. You could very easily start going into a consolidation mode or a sideways movement. Need to leave the office will get back with you later, I see that it has came down to 23.12. Did you get out?
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Am planning to leave in a half hour or so. I'll keep an eye on it until then. Realistically though this is just a learnign experience. Right now I'm up $50 minus commission, so if I lose all that and more I won't be upset, moer just trying to understand it better for future reference.
thanks for all of your help. Ian about 2 weeks i am going to start trying to learn to read charts better.
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That's great, glad to hear you made some money. I am planning to bring the chart on the board and give an explanation on what happened. This may help you some.
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Actually, $2 per share woudl only be 212.5 shares, which is just over $5300. Not sure I'd do that with a short, just due to the potential downside, but that's what I typically put into big board stocks.
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