Looking at Amazon on the monthly chart
If you want to know what parabolic looks like, here is a great example.
Internal indicators:
* RSI heavily over bought and creating bearish divergence
* W%R very over bought and embedded
* Histogram has made a Lower Low that hasn't resolved itself yet and also creating bearish divergence
* OBV is still up and healthy due to the amount of money being poured into this asset.
* Many monthly gaps down in price that still are yet to be filled in
* VPVR is extreme running on single ticks ie not a lot of volume was traded on the move up
* Fib study done off the entire range
My opinion:
Just remember that the top still hasn't been put in yet, so this could still run higher. This is just a reminder that this asset is very over bought and people should be thinking twice about taking a long setups or investing in it long term. From the bottom of the range to the top AMZN has done approximately 18,000% (let that sink in) without a healthy retrace. We also have to take into consideration that AMZN has been in a range for 80% of its existence and has now been trending upwards for 20% of the time. (Investopedia) 80-20 Rule-
The 80-20 rule says markets trend about 20% of the time and spends the other 80% grinding through trading ranges, pullbacks, and other counter-trend action that tests boundaries. Price rate of change rises in trends, attracting the trend trader and falls in trading ranges, attracting the swing trader.
If you like what I do, drop a comment, tell me what you think and don't forget to like and subscribing. Thanks :)
Also don't forget to "plan your trade and trade your plan"
If you want to know what parabolic looks like, here is a great example.
Internal indicators:
* RSI heavily over bought and creating bearish divergence
* W%R very over bought and embedded
* Histogram has made a Lower Low that hasn't resolved itself yet and also creating bearish divergence
* OBV is still up and healthy due to the amount of money being poured into this asset.
* Many monthly gaps down in price that still are yet to be filled in
* VPVR is extreme running on single ticks ie not a lot of volume was traded on the move up
* Fib study done off the entire range
My opinion:
Just remember that the top still hasn't been put in yet, so this could still run higher. This is just a reminder that this asset is very over bought and people should be thinking twice about taking a long setups or investing in it long term. From the bottom of the range to the top AMZN has done approximately 18,000% (let that sink in) without a healthy retrace. We also have to take into consideration that AMZN has been in a range for 80% of its existence and has now been trending upwards for 20% of the time. (Investopedia) 80-20 Rule-
The 80-20 rule says markets trend about 20% of the time and spends the other 80% grinding through trading ranges, pullbacks, and other counter-trend action that tests boundaries. Price rate of change rises in trends, attracting the trend trader and falls in trading ranges, attracting the swing trader.
If you like what I do, drop a comment, tell me what you think and don't forget to like and subscribing. Thanks :)
Also don't forget to "plan your trade and trade your plan"
Yorum:
Ok, so ive got heaps of comments telling me how bullish they are on AMZN, sure it went to new all time highs but im sorry, this chart and candle pattern tells a thousand words
Yorum: