Chart pattern based on short and long-term oversold levels based on the Williams %R momentum indicator.

Requirements:

  1. Oversold on an annual (Williams %R 260 days < -80) basis
  2. Oversold on a short term (Williams %R 10 days < -80) basis

Set up:

  1. White candle (Close higher than Open)
  2. Close is higher than yesterday’s High
  3. Low that is higher than yesterday’s Low

Purchase:

  1. Initial preservation Stop: 5¢ below current Low
  2. Purchase Price: 5¢ above current High
  3. Potential targets: 50-day Moving Average, 200-day Moving Average, Close of a gap

See: http://www.youtube.com/watch?v=SJZ2a2nRX2w

WashoutPattern