Step 2: Improve Attention to Detail (Price Stall Tops)
by Erik Grywalski
Note: The historical stock examples given below are for EDUCATIONAL USE ONLY. They ARE NOT to be used to make buy/sell decisions in today's market. For more information, please read the HSR Terms of Use.
This section contains examples of stocks that peaked on a Wide Range Price Stall (WRPS) distribution signal.
There are four (4) common Wide Range Price Stall topping scenarios:
1. Stalling tops just out of a base
Stocks topping on a stalling price bar shortly after breaking out.
Historical Stock Chart Example: China Petro & Chemical (SNP) 2007
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2. Stalling tops with a higher high
Stocks failing a retest of the stalling price bar after making a higher high.
Historical Stock Chart Example: Blue Nile (NILE) 2007
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3. Stalling tops with a lower high
Stocks failing a retest of the stalling price bar after making a lower high.
Historical Stock Chart Example: Monster Beverage (MNST) 2012
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4. Stalling tops with a fast break
Stocks that broke hard after the stalling price bar.
Historical Stock Chart Example: Accelrys (ACCL) 2000
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Please keep in mind that some tops can be placed into more than one category.
For example, a stock may top on a stalling bar shortly after breaking out AND also fail a retest of the stalling bar on an attempted rally.
At times, the WRPS may just be a warning sign (not a top) that needs to be watched in the future.
Please >>CLICK HERE<< to go to Extended Double Tops.
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