Sagar Nandi
Eleven ways that CUE systems helped traders being on the right side of $ETSY's move and avoid buying at the top.

All the snapshots are taken ~11 AM EST on 7th Feb. Numbering in the text below follows the marking on the pictures.

CUE Technical Analysis

Weekly Backdrop chart template.

1) In the weekly chart, it created a false upside breakout at Watermark resistance pivot level.

Daily Entry chart template.

2) Daily had multiple Bearish Headwind reversal signals at the same price level from where the stock fell. When the price came to that level again, some more selling might be left, and you would avoid buying at the Headwind-price level.
3) ETSY also created a false upside breakout at the daily Watermark resistance.
4) On the day of the false upside breakout, the stock closed precisely below the Memory trendline resistance. The Memory trendlines work pretty effectively and looking at that closing; you would not buy but look for short-term shorting opportunity.
5) Next day ETSY displayed a bearish Flow candle.
6) On the bearish Flow candle CUE system also presented Extreme Bearish Pressure.
7) The stock was at Price Extreme (Pendulum) High - that is usually a level where CUE traders look for exiting long trades and enter short trades.
8) The false upside breakout and the next bearish Flow days both had Extreme High Activity, showing possible exhaustion of bulls at Pendulum High.

CUE Vital Fundamental and Peer Analysis

9) ETSY's Vital scores are poor: valuation is medium.
10) ETSY's last annual, as well as previous quarterly earnings growth are negative.

CUE Edge Industry Rotation Analysis

11) ETSY's industry is weak relative to others (more magenta than cyan).

CUE 360° analysis outcome

Based on all the bearish/weak signals that you could easily identify, you would avoid buying ETSY at the top. If anything, you would probably look for shorting opportunity.

ETSY Chart.jpg    ETSY Vital.jpg ETSY Edge.jpg

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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