This morning we are looking at the recent trading action in Fire-Eye (FEYE) both on a daily and weekly chart. Recall, the Leibovit VR is available on a one-month free trial and is presented in three versions: VR Sequential (shows all VRs), VR Directional (filters out repetitive VRs) and VR 2-day (anticipated follow-through for 2 days following a VR - negative or positive).
On the daily chart, please note the strong correlation with the Positive VRs over the past several months. As you may remember, I try to tie in a momentum indicator - here a 5/3/3 Stochastic, i.e., a rising stochastic helps confirm a Positive VR where a declining stochastic helps confirm a Negative VR.
A Positive VR was formed on February 11 along with a confirming rising stochastic well ahead of the 27% advance that followed in a matter of six days. There was one Negative VR formed on January 6th, which we intentionally ignored due to a rising stochastic.
If you flip to the weekly chart, please also note the strong correlation of rising prices following a Positive VR and lower prices following a Negative VR. The most recent multi-week move was signaled with the January 12th, Positive VR.
MetaStock Business Development.