about that LNKD chart from Sept 2013 …
CLIFF NOTES: short term option play expecting support to hold for the gap area 128-140. (?) Note we have gone thru the previous 4th of a larger degree….if the high was 3 at 250 then price shouldn’t go thru 122 ish as a 4th wave correction does not go below wave 1. Interesting to say the least ….post from 09/2013
now we don’t want to catch a falling knife as I hear that isn’t fun … however, that being said, look at the chart below. Just like we showed parabolic take offs in GOOG, IBB, PCLN, AAPL, etc we have the equal and opposite affect when something is being hammered in a liquidation phase. So, we look for “the start of the campaign” and use that as our radius and basically try to capture the move DOWN and note it’s acceleration at the 3 o’clock position. This can “usually” be a point of looking for the BOUNCE or the SUPPORT to come in and then work a lower time frame chart for the retest. Don’t recommend just blindly jumping in BUT expect the area shaded blue to hold and then try to work a pullback to get long .. certainly is looking beat up, isn’t it?