Home Depot. Towards Recognizing The Potental Of "Step-Up" Chart Formations.
You have to be quick on the opening. It's a Tuesday. Look at this five day chart which has a spike up formation. The last day on the above five day chart is today's trading action. Here now is it's one day trading chart as of the close on Tuesday. You had to buy in early, really early on the opening dip. So the stock closed Monday at $346.09 and on Tuesday sixty seconds into the mornings trading action (which was 9:31:00 a.m.) it was $344.31. Then at 9:32:00 one minute later it was at $343.80. That's an opening drop of $2.29. Now look at this one series of Call options. A low of $375.00 at 9:33 a.m. and a high of $750.00 at 9:56:00 a.m. This is a case of playing a "step-up" chart formation in the first hour of trading. After that the upward thrust ran out of steam. It helped that the D.J.I.A was up 537 points on the day. Buying in on early morning dips on a stock with a"step-up" chart formation sometimes is a profitable experience.
