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Sunday, December 26, 2010

Why New High is Important


In the chart above prior breakout, price was moving up and down the0 .25 to 0.5 range. from Jan 2008 to May 2009, the Price breakout from 0.5 to 0.75 on June 29, 2009 and the rest is history.

If you look at the  stock’s price action which was trading near its new high. Nobody is down with their position or nobody is losing, It is the line of least resistance. 

2 comments:

Anonymous said...

Hi Boss,

I agree with the importance of a new high. Before, I always get scared entering a new high price (probably of my reversion to mean orientation) but I finally (better late than never) realized that it is my best entry.


Regards,
turtlecapital.wordpress.com

About tracer said...

Yup, if you see the price action of PCOR for the past 4 years, it has been bouncing up and down a tight range. I have been Whipped by PCOR at lot of times when I was a newbie.

But now, I even bought PCOR at 14 and I got queries, why? As long as you know what to do when the price tells you another, buying at high price does not matter.