Premise:
Lots of institutions and traders use it as a benchmark indicator and this significant movement creates a one-way momentum.
For Buys
Today's range is greater than the daily range of the past nine trading sessions.
Either yesterday or today the stock is trading at or below the 50-day moving average and explodes higher
Tomorrow, buy 1/8 above the explosion-day high.
Our initial protective stop is 1 point below the explosion day's close.
For Shorts
Today's range is greater than the daily range of the past nine trading sessions.
Either yesterday or today the stock is trading at or above the 50-day moving average and explodes lower.
Tomorrow, sell short 1/8 below the explosion-day low.
Our initial protective stop is 1 point above the explosion day's close.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment