Coca-Cola (KO): Daily Bullish Crab at RSI BAMM Completion Point

In the example in Figure 6.37, Coca-Cola formed a distinct Bullish Crab that possessed an ideal RSI BAMM setup. The pattern started to form after the complex RSI structure was completed. After the initial bounce and retest to the RSI midpoint 50 level, the stock consolidated and eventually declined lower while forming a distinct pattern.

Figure 6.37.

Although the RSI Confirmation Point experienced a deeper retest than is typical, the impulsive reading did not exceed the lowest point of the complex indicator formation. Furthermore, the PRZ accurately defined the precise area that comprised less than a 1-point range for the execution of the long position.