Remember when we were talking about that BaDaBoom Pattern?
We were looking for a situation where a stock price had dropped dramatically from its 2-year high, but was coming back big time.
Like, maybe, it was down 50% but has come back from its low by, say, 30%.
Yes. That's what you called it.
Anyway, I thought I'd check to see if, historically speaking, that was a good pattern ... one that suggested we should buy.
And I decided the easiest way was to download ten years worth of data (from Yahoo) and cruise through each year, looking for neat patterns.
>I assume there's a spreadsheet.
Yes. It looks like this:
You type in some Yahoo stock symbol and click a button to download the data.
Then you move the slider to get a moving window on a year's worth of price variations.
There's a chart for that moving year and the drop from the maximum (for that year) is displayed ...
>And the rise, from the minimum, right?
Yes, for the particular year that's displayed on the right chart.
It's great fun to move the window back and forth, looking for your favourite pattern.
>And did you find anything interesting?
I'll leave that up to you. Click on the picture to download the Excel spreadsheet and play.
In fact, you might look for other patterns
... then see what the subsequent behaviour was.