Frequently asked questions
- 01
BMU-Index-ETFs – For the Broader Market Update sent out each night as well as Indexes, and ETF charts
52 wk historical highs – these are the best of the best patterns and usually companies
Retests – in a pattern formation to retest the historical or intermediate highs.
50% mid – These are stocks are currently at or approaching the 50% line between their all-time highs and lows. It’s a decision time or line in the sand where the stock either breaks out above or drops back into the channel below. They have one of two outcomes: extending back up to the retest to previous intermediate or all time high or drop back below the mid-line and continues in the “Doom Loop” category. It’s a cautionary yet profitable position and should be traded with tight stops.
1. For continuation moving higher, it would “typically” break out above the 50% line then back test the former line of resistance it broke out of which now should become support to continue moving higher. Example here
2. For contraction moving lower, it would typically either fail at the retest of the 50% line or temporarily break through just above and then fail back testing that line falling back into the lower channel. We call this move a “Prairie dog”.
Doom Loop - Is a term we use. These stocks are based off the Nasdaq doom loop model. These can be trading vehicles but would not be considered investment opportunities unless they break out of this loop as described above. These tend to be traps for longs. Most people “think” they are buying at a low for a monster move that will not come for potentially years, yet there are channels they bounce around that can be successfully traded. It is vital you know and see the channels and exit every time a peak is reached within a channel even when testing it’s 50% line. These stocks tend to not hold their gains and quickly fall back to the last support for retests or can easily fail lower supports. Example of charts compared to Nasdaq correction model here and added despair slope here. Here is an example stemming from Tim's art background where he shows MRNA's chair pattern up and then down here. Two scenarios for trading:
1. If the stock has fundamental issues and are at best “lotto” plays.
2. Or if it’s in the “super cycle” doom loop which every stock goes through. This is not necessarily a problem with the company it’s a problem with the market in general and tends to be a temporary delay for potential expansion.
- 02
Tracking Tim's charting method Tim employs an artistic flair, using larger time frames for initial stock patterns. Then, he adopts a finer lens for detailed adjustments, refining entries, exits, and timing. Progress is consistent, with weekly updates.
How do I learn more about Tim’s unique charting style? Tim’s self-taught approach relies on an artistic method inspired by his natural drawing skills. First, he “sketches” the broader structure of each stock on larger chart time frames to identify its overall direction and shape. This process yields forecasted projections, though pinpointing exact entry and exit points is not the primary focus—those details may naturally arise as part of the model formation. Once the broad model is set, Tim refines it on smaller time frames, “molding” intricate details to highlight more precise entry/exit zones and timing expectations. Week by week, he updates and fine-tunes the model, adding layers of detail to reveal emerging patterns. These patterns serve as a guide for risk modeling, offering insights into the potential trajectory of a stock based on Tim’s distinct charting style.
- 03
Because Tim has charted for over 20 years, his style has changed somewhat. He has also charted thousands of financial instruments over that time due to his work at a prominent hedge fund. Unless the company is new, it is rare you will find an instrument he has not charted. To make all of these the same would take a significant amount of time where his research would come to a halt. So, each chart colors may look differently than others. What is consistent, is the colors within each chart. Because he initially works with the entire history of that instrument, each pattern within that model is clearly defined and repeated with the same color coding.