Earlier this week, Hit & Run members took a long swing in CLSK at 30.10 as it carved out a Handle to a Cup & Handle at its 50 day line.
This was a Cheetah Entry (Cheater) as the pivot on the right side of the Cup base and the Handle were below the left side of the Cup.
On Thursday, I noted on the Hit & Run Private Twitter Feed that CLSK was showing good relative strength and to add to our position on an Opening Range Breakout.
CLSK was exhibiting the best tell on the tape: a green bean in a sea of red on Thursday.
Often this tell triggers a Torpedo… as in damn the torpedoes, full steam ahead.
The following 10 minute CLSK shows the price action.
The tweets below show the blow by blow on the Hit & Run Twitter Feed.
Taking the 27 swing low projected CLSK could be magnetized to 39.
As the Square of 9 image below depicts, 39 is 180 degrees up from 27.
Red is 27
Blue is 39
Momentum often sees stocks magnetized to these “squares” of 90, 180, 270 and 360 degree decrements.
The Square of 9 Wheel is a huge benefit as it allows a trader to buy in the hole and sell a spike with confidence.
More importantly, once a stock is “in motion” it allows us to pinpoint a projection, giving us confidence to pyramid a position.
Let’s take a look at RIOT, which has been a screamer in February.
Thursday morning on the Hit & Run Private Twitter Feed, I flagged initial support in RIOT at the 71 region, being 90 degrees down from the 80 region.
The presumption was for a runup to the open gap near 80.
After RIOT broke 71, I flagged 64 as a support region with the likelihood of a run back to 71.
64 being another 90 degrees down from 80.
RIOT overshot 64 but reversed on a dime, leaving Train Tracks on its 10 min chart.
This gave us confidence it would follow through to 71
The following 10 min RIOT shows how well it conformed to these Square of 9 projections.
Purple is 79.50/80
Green is 90 degrees down at 71.50
Blue is another 90 degrees down at 63.50
Red is another 90 degrees down at 55.50
In sum, the Square of 9 Wheel is a great guide for investing, but using it for the last 35 years I believe I have mastered how to use it for day trading combining it with patterns and multiple time frame analysis.