How to trade like Bubbles from Trailer Park Boys

8/03/2022

Ever glance at a chart and immediately move on?

I used to do it all the time…

But I learned my lesson early on in my trading career when I saw those same charts go parabolic hours later.

What was I missing?

I didn’t look close enough…

(Source: giphy.com)

Look, using multiple time frames is the only way to identify a BUY or SELL with any real degree of certainty… Period.

If you only check the daily chart, you’re bound to lose or miss out.

“Smart money” knows this and so should you.

Let’s try this out on a recent runner, 36Kr Holdings, Inc. (KRKR):

We’re looking at the 78-minute chart… I like the signals better and the backtesting proves it to have a higher success rate compared to the hourly and other medium-term time frames.

But when this hits your screen, it doesn’t look all that promising.

Next chart.

Ahh… much better. We’ve got a tradeable chart.

See the difference?

KRKR is pitted between the Support and Resistance channels after a needed retracement, but you won’t get this look on the 78.

Now, the Fibonacci Retracement puts us in and around that beautiful thing I call the “Fib Pocket” (50-61.8%), although with a rise like this, I’d expect the share price to dip below towards the Support channel, albeit briefly.

On the lower chart, Chris Hood’s Squeeze Trading Tool 1.2A (my number one indicator) is beginning to flip to the upside with the histogram now dark red and curling higher.

The vertical green bar on the indicator signals buying pressure as well and the red triangle is another sign that a squeeze to the upside is beginning…

Below that indicator is the Squeeze 4-Pack v8, and if you haven’t read where I’ve talked about this before, it’s a composite of the Squeeze Trading Tool 1.2A with the 5, 10, 15, and 20-period lookback all wrapped into one clean and tidy indicator.

The reason I’m mentioning this is the first green dot we see is on the 5-period lookback, so momentum may be shifting to the upside… No confirmation yet though.

Simply put, we just want to see more green on all indicators…

The same goes for the Stochastic lines which act as a customized overbought/oversold signal.

As for Relative Volume, yesterday’s action was up by 11,392%.

In other words, I don’t believe the run is over just yet. It may not reach the previous high, but there’s some left in the tank.

I’m bullish over $1.85…

Remember, look closer.

Keep moving,

(Disclosure: I hold no position in KRRK but intend to initiate a position in the next 30 days.)

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.

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