I drew these Fibo lines for DD in June 2015, and realized that it was bullish in the long term because the retracement of the big pattern rested on top of 50% fibo (the 50 line) . It was even more bullish in the short term because the retracement of the latest , small box was above 23.6% fibo of the top half of the big pattern.
I looked into DD when I saw that it bounced from its SMA 20 on July 1, 2015. To confirm whether I should buy, I looked into the 10 minute chart. I saw a bullish pattern- a double bottom. It had just broken out and had a target of 10.30. It was unable to achieve its target on July 1. On July 3, it achieved a high of 10.36, thus achieving the double bottom target on the 5 minute chart.
On July 4, the price retraced and went to as low as 10.14, then made a triangle. Thus, the pattern formed what I suspected to be a cup and handle. The target for the pattern was 10.86.
As the handle formed, I plotted the divergence/ convergence cycles to see whether it was likely to break out or break down. I realized that it was at the bearish convergence cycle and a breakdown was possible.
Indeed, it broke 10.14 intraday support and went as low at 9.86. I suspected it might be forming a bigger double bottom after all.
Thus, I held off my buying because the day’s candle was bearish and so were the next ones. It bounced off SMA 100 on July 11. On the next two days, it formed higher lows and higher highs.
On July 15, it did an intraday break of its box top at 10.40 that it created on July 3 when it created a high of 10.42 intraday. I bought my first tranche of DD at 10.28 .
It closed at 10.38 with many buyers.
When I purchased the stock, I was looking only to follow its trend but had hopes that it would break out of its all time high. It was a bonus that it actually did on July 21, 2015.
When it broke, I drew this box and computed for the next resistance. Since my buy at 10.28 was below the breakout point, and the breakout point at 10.96 was my new support level, then my buy level would assure me of profits even if the support at 10.96 broke.
I added a second tranche on July 21 at 11.46 and another at 12 on July 22 .
I exited at 12.28 and 12.48 on July 24, as the intraday chart formed a bearish divergence and my cut off point at 12.50 was hit.
Then I bought back the shares on 7/28 at 12.48, and added more at 13.08. I added more on July 29 at 13.60 and 13.42.
Then I sold all these shares on 7/30 at 13.70 and 13.80.
It seemed the strong uptrend was over but it was going to sideways. Since traders would be buying on dips for fear of missing out on another rally, I did the same, with the intention of a quick trade. Again I bought on 7/31 and Aug 3 at 13.50, 13.16 and 13.22 , and sold all at 13.72 on Aug. 3.
This chart summarizes my DD trade: