Top Reversal Pattern – 1 Year Later

July 12, 2017 by  
Filed under Chart Patterns, Swing Trading

 

 

 

The rounding bottom pattern continues to be one of the best performing long-term swing trading patterns in the market.

 

Last year we published a video on this very bullish pattern on Youtube. NPTN was the example given in the video and the stock had just reached the ideal entry point. After the video was published, the stock soared about 80% within about 2 months.

 

Another example of the bullish rounding bottom pattern, on a stock with rapidly improving fundamentals, was LGIH. We featured this stock in a more choppy rounding bottom on April 17th.

 

As with our other featured trading setups, LGIH has the rapidly improving fundamentals to not only make a large move higher, but also to hold those levels.

 

Earnings growth had averaged over 50% per year over the prior five years. Sales growth was very solid and expected to be around 20% per year over the next couple years. Return on equity was strong at around 25%.

 

LGIH was carving out a large rounding bottom pattern that many traders missed and was carrying a low valuation – especially to its peers.

 

We found the stock after it had made a higher low and then a higher high on the right side of the base. The price had come back to test the ideal entry point and held in a smaller rounding bottom pattern.

 

One bullish chart pattern is nice. A bullish pattern within a larger bullish pattern is even better as it attracts more traders. Here is how it looked when we featured it to subscribers.

 

 

LGIH pulled back briefly but held above our stop-loss point and then soared about 40% from our target entry point in a couple months.

 

 

This strategy makes it very easy to play this setup whether you work full time or not. You would be surprised how often you get a good entry price just by buying the stock at the open the day after it reaches our entry point with a market order placed after hours.

 

But the rounding bottom has been one of the most bullish technical setups on these longer time-frames. We caught CMG in this pattern near an ideal entry point earlier this year before it surged 20% within a month. WDC was featured late last year before it made a beautiful 40% move higher within a couple months.

 

By entering near an ideal technical entry point as we explain on the blog and on our Youtube channel, you can get in early and target big gains with a tight stop and a high probability of success.

 

We have another rounding bottom pattern on a top Chinese growth stock that just reached its technical entry point and was featured Monday. Its one of the top Chinese growth stocks.

 

 

The rounding bottom continues to be a great technical pattern on top stocks. We find lots of these throughout the year for subscribers.

 

Earnings season is about to start so its a great time to learn our earnings eruptions trade. Its our #1 shorter-term trading setup in the current market that normally lasts from 10 minutes to 3 days.

 

 

Stocks with Rapidly Improving Fundamentals Poised to Move This Week

 

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