I was watching NMTI from 8/21/08 and thought it looked like a classic swing between channels. It was coming down towards theÂ EMA line from the upper channel, theÂ Stochastics was turning up and crossing, giving a buy signal.Â I was ready to get in when NMTI crossed 11.50, which it did. It did work out very well since I sold NMTIÂ yesterday at 14.15, a good 7.69R trade for me. Of course, all this had absolutly nothing to do with technical analysis andÂ everything to do with the announcement on August 31st that NMTI got the big FDA approval they where waiting for to modify the main goal of a study (more on Reuters news). I wonder how many of these I can stumble across by shear luck while using a system that targets something else.
Here are the charts and comments for this trade. I made that entry in TC2007 on August 21st:
And here is the chart of the exit on September 7th: