The chart below shows a very observable pattern to COSTAR. It is doubtless a channel.
The first thing that will come to mind is that, “It’s purely by chance.. there’s no reason why this is happening”. We may not be able to see the reason, but the pattern is undeniable. Amazingly this does not only happen with COSTAR or any one group of equities. From experience it happens in loads of equities, forex and other things. ‘Reason’ tends to add some soundness to the observation – I won’t doubt that. But channels are something we see fairly frequently. Now I’m not saying that COSTAR is bound to follow the channel in the future. Surely these patterns must end at some point.
Part of a strategy I’m developing is to put alerts (aka alarms) on key positions I’m interested in. Tradingview offers a range of alert options. So I reckon that if I have about 20 of such positions being monitored by alerts, that’s good because only a minority may come in. Of those that are triggered I’d have to assess them for risk etc. But the point is my ‘net’ is cast out there. COSTAR is a hefty stock, but methinks if I can get in with a small bet at the right low point, with favourable stop-loss, it could be good. I could theoretically ride one of those waves in the channel, up. :)