Science of Stock Price Action: When a stock turns around on a weekly chart by making a big candle move, then the stock usually becomes buy on declines on a pullback at the same moving average.
Now let us look at Disney stock chart from that perspective:
Disney stock once was struggling below 50 week moving average but then made a large candle move in Nov-Dec 2016. Now the stock has pulled back and once again standing at the same moving average. Ideally it means the buyers should come and take the stock higher. Now, there is nothing guaranteed in the market but the Law of turnaround suggests it should happen.
In 2016 - I covered HCC as a Turnaround play for Premium subscribers. I have now unlocked that article. Here's the Video analysis I shared back then
Please watch in Full Screen Mode
Just see what happened to that Turnaround play -
The stock almost doubled. I am not anyway suggesting the same with Walt Disney stock. All I am saying how turnarounds work.
Science of Stock Price Action
There is a logic that stocks follow when they make big moves. I have tried, to sum up, those concepts in a methodology called Science of Stock Price Action.
Do these concepts work all the time? Absolutely not. But when they work - they reward in a big big way. There are many factors at play primarily the overall market environment. The objective of my website is to put forward many Live case studies before you so that you can learn how these patterns work and why sometimes they fail too. The whole idea is to illustrate and make you understand the whole logic behind it.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers