Coils for stock prices have a 50% chance of breaking out in either direction. If a breakout occurs, there is a 50% chance of a throwback (pullback). If the throwback occurs, the performance of the coil is diminished, so one should act on the breakout. Gap breakouts improve performance if the breakout is to the downside. Increased volume after a breakout (in either direction) improves stock performance. In the case of the NASI, the downside breakout from the 1st green coil gave a diminished SPX (dark grey line) decline when compared with decline after the throwback (starting at the 1st lavender arrow). Are we waiting for another NASI coil to playout?
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