Trading plan:
1. Wait until CM_Ultimater_MA_MFT_V2 indicates a reversal of secondary daily trend. This indication will be confirmed by change of the color of MA from red to green. Primary trend is still bearish until confirmed to be bullish.
2. CM_Williams_Vix_Fix at local daily bottom which can be seen as a confirmation of the reversal secondary bearish trend which started on November 17, 2022.
3. WT_LB is below oversold band which is also on daily timeframe is indicating a secondary trend reversal.
4. Resistance should a price ceiling of the bearish channel at $30.
5. I will start accumulating within the range 16.85-16.10 but if it will start consolidating below 16.00 then close the position.
Implications:
1. Since CM_Ultimater_MA_MFT_V2 is lagging indicator there is a trade off between confirmation of the trend reversal and return rate of the trade. Therefore it could be prudent to start accumulating the position before we see a confirmation of the trend reversal by this MA.
2. This is post earnings period and Federal hike announcements/meetings have already passed. So volatility should be lower.
3. Of course this trading plan has worked out 100% in the last 7 times (of course there is an element of data mining) but trade should be done cautiously.
4. Stop loss would be if we start consolidating below $16
Reckon it does not contract to the rationale I was trying to stick to:
- Identify a trend reversal (either primary of secondary on daily and weekly timeframes)
- Get into the position after considering different tools of confirmation and setting a stop loss.
- Ride the trend until there is a sign of trend reversal (either primary of secondary on daily and weekly timeframes) and try to get it confirmed.
- Close the position.
Please enjoy and if you have any further insights please share
Do not forget to make your own assessment and research.
1. Wait until CM_Ultimater_MA_MFT_V2 indicates a reversal of secondary daily trend. This indication will be confirmed by change of the color of MA from red to green. Primary trend is still bearish until confirmed to be bullish.
2. CM_Williams_Vix_Fix at local daily bottom which can be seen as a confirmation of the reversal secondary bearish trend which started on November 17, 2022.
3. WT_LB is below oversold band which is also on daily timeframe is indicating a secondary trend reversal.
4. Resistance should a price ceiling of the bearish channel at $30.
5. I will start accumulating within the range 16.85-16.10 but if it will start consolidating below 16.00 then close the position.
Implications:
1. Since CM_Ultimater_MA_MFT_V2 is lagging indicator there is a trade off between confirmation of the trend reversal and return rate of the trade. Therefore it could be prudent to start accumulating the position before we see a confirmation of the trend reversal by this MA.
2. This is post earnings period and Federal hike announcements/meetings have already passed. So volatility should be lower.
3. Of course this trading plan has worked out 100% in the last 7 times (of course there is an element of data mining) but trade should be done cautiously.
4. Stop loss would be if we start consolidating below $16
Reckon it does not contract to the rationale I was trying to stick to:
- Identify a trend reversal (either primary of secondary on daily and weekly timeframes)
- Get into the position after considering different tools of confirmation and setting a stop loss.
- Ride the trend until there is a sign of trend reversal (either primary of secondary on daily and weekly timeframes) and try to get it confirmed.
- Close the position.
Please enjoy and if you have any further insights please share
Do not forget to make your own assessment and research.
Trade active:
CHGG announced $150m share repurchase which is 9-10% of the Company
