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Writer's pictureMomentum Stock Alerts
May 19, 20172 min read

Member Trade Alert: $BIDU Building Cause for Higher



BotTrigger Trade Alert: $BIDU bought @ $188.70 a starting 3% allocation. There's more than a few reasons why we're getting long right here in this area. There is evidence to suggest that $BIDU is at the precipice of a breakout rally into a higher trading range. It has been coiling into a 2 year giant symmetrical triangle and is now at the apex of that triangle. Notice that it's been making higher lows since all of 2016 & 2017. However it's been also making lower highs. This back and forth is what cultivates into a symmetrical triangle. We're now nearing the very tip of that triangle which is known as the apex zone. Symmetrical triangles are inherently bullish & tend to be continuation patterns of the prior trend that have a high statistical win rate in breaking out towards the upside along a respective uptrend. So as we're here in this apex zone, we see BIDU closing out the week slightly above the apex. Further supporting the potential for the breakout in this pattern is that we're getting a bullish crossover on stochastics on the weekly chart & the curl is just about to begin on the monthly chart. What's more, we're also getting a positive uptick in RSI value on the weekly time frame. A new rally can only happen if RSI value uptick is positive and breakout above previous RSI high pivots. If price were to increase but RSI value stayed flat to negative then the move is largely suspect. But when you have both price & RSI value increasing in value together then it tells you that there is power behind the move. What's more, this RSI value is the strongest that it's ever been within this 2 year long coil since November of 2014. We're making a first stand here and getting long.


Some of the greatest pearls shared by Jesse Livermore:

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“Money is made by sitting, not trading.”

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“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

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“Buy right, sit tight.”

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“Nobody can catch all the fluctuations.”

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“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

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“It takes time to make money.”

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“Don’t give me timing, give me time.”

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