Line and saucer formation | stockbee

12/11/2008

Line and saucer formation


SINO: As a pattern, this in very nice breakout. There is prior neglect , recent IPO, sudden volume expansion.It is part of my "Virgin" scan. In current market circumstances may not follow through.

This is the kind of pattern described in the book How Charts Can Help You in the Stock Market by William Jiller where he calls it 'Line and Saucer Formations'.

"Lines and saucer form the chart reader's dream patterns. They're easy to recognize, they're reliable, they usually portend an extensive price move and- best of all - they give the chartist plenty of time to assume a market position close to the bottom or top of ensuing swing. They have only one major drawback: they're rare among popular, actively traded stocks."

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