A Tombstone Formation is described as a quick move up in a few weeks and a slow stock distribution over months.
Please see the long-term graph.
Historical data indicate that builders of such tombs (stockholders) are generally buried underneath.
The graph you are seeing is called the Tombstone formation.
(Source: A strategy of Daily Stock market timing for maximum profit, By Joseph E. Granville)
It is time for those who are over extended to use PE as “Please Exit”, during this rally.
Everyone who was bullish on this stock is in. Now the Hedge Funds, Short Sellers will drive down this stock for a few months. Base building or from weak holders to strong holders will take a few months. Stocks which fall with high volume and price (down momentum) seldom come back or show major rebounds in trend for months. If you are a speculator at these prices, please have a stop loss order.
Thanks for listening and Good Luck in Your Trading!
Joe Granville! Now that is a name from the past. Eccentric and famously wrong in most of his later work but he did come up with some original and very useful ideas. Thanks for bringing his name up. I have three of his books and still use some of his pattern work.