Here we have another lovely profitable trend, this time to the upside. I guess from the name they are a pharmaceutical company but other than that I know nothing about them. The price action on the chart tells me everything I need to know, and want to know.
Richard Dennis, the legendary trader stated in his Market Wizards interview that "I could trade (an instrument) without knowing the name of the market". As far-fatched as that seems to those who spend hours pouring over earnings reports and calculating various ratios, that's exactly what I do when trading stocks.
And on this chart, all I can see is a nice period of consolidation after a couple of failed breakouts (in both directions) with an appropriate reduction in volatility before setting off on the current uptrend. If you're wrong, its only a small portion of your equity that's at risk (assuming you use proper risk management). And if you're right, then you end up with a nice profit like in this example before you move on to the next position.
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