ATEC: Kumo Bounce or Retracement to the Twist?Alphatec Holdings, Inc.BATS:ATECtroydowvanzandtThis is a potential short-term swing trade. ATEC is currently experiencing a Kumo bounce. As far as Kumo bounces go, this one is quite meh--a real nadaburguesa con queso. What's interesting is that there's a real either-or proposition at hand. Either the Kumo bounce continues its feeble ascent or it gets sucked down to the Kumo twist (as denoted by the white arrow). Yes, it could trade sideways, but Kumo twists are well-known low-resistance areas, and price getting sucked into them is very much a thing. What will show ATEC's hand shortly is where price closes in the next couple of sessions relative to the C-D projection. This projection is actually a propagation of the synthetic thesis. The thesis behind the A-B leg is that ATEC is worth more than its current price; therefore, we should buy it. Sellers eventually manifested the antithesis: No, no, no, this needs to be sold. This resulted in the corrective B-C leg. Then buyers reasserted their thesis in the form of the synthesis. I like to call the C-D leg the synthetic thesis. This synthetic thesis--the C-D projection--is very much a trend line. As such, it's a great trade-management tool. If price crosses it to the antithetical side, you need to reassess the trade. You see two C-D projections on this chart of ATEC. One is the product of the major N wave; the other the product of a minor N wave. Right now, price is half-heartedly adhering to the major projection. This is not the trade of the century, but it's a good example of how a Kumo twist can work. If you'd like to learn how to trade Kumo twists, check out my new book on Amazon--Ichimoku: The Holistic System. Para operadores de habla española, hay una versión en su lengua entitulada Ichimoku: El Sistema Holístico.