Our trading system generated an entry signal on 6th Dec however with signals generated in our red price bands we wait for more suitable conditions to enter. On 14th Dec our price reversal trigger generated a signal and we entered an OTM long call in line with our strategy. In the 20th Dec, DG hit the bottom of the bullish ichimoku cloud and closed higher the next day – a bullish sign in our books.
On the 22nd Dec we had a price reversal signal to the sell side. We remained in the trade however as the squeeze signal was still valid. We did receive a + signal inside our squeeze which is a confirmed ”ADD” signal. That gives us confidence that the sell off in price could reverse shortly.
On 27th Dec we saw a strong shift in the ADX with the candles going from red to green and the price bands changing from red to green indicating a break out is imminent. On 28th Dec we received a long price reversal signal and on 29th Dec we added a put credit spread to our already placed long call.
The overall position is now a funded trade (where we are using a credit trade to pay for a debit trade) and the combined position is up 283% as at the close of 29 Dec.
We believe that DG will move towards 240 over the next 3 weeks on the back of the following bullish signals:
1) Our squeeze signal has a strong historical performance over the past 2 years
2) The B score is strongly rising with a strong ADX reading
3) Multiple long signals within the squeeze indicating further bullish momentum
Some major lessons here:
1) Trade highly reliable signals – remember not all indicators are equal and based on backtesting you will be able to see which stocks perform well under certain scenarios and with certain indicators.
2) Not all assets work the same on an indicator. As a trading coach I am often faced with clients who trade one simplistic set up with mixed results, blaming themselves for their own performance where the real issue is the fact that the set up is not correct for the stock (for example, trading an 8/13 SMA crossover on all assets when the stock has a weak history of performing under that trigger…)
3) Most indicators are multifaceted and there are a number of complimentary indicators that can enhance your trading of an indicator (we use a number of proprietary tools to further enhance our understanding of the squeeze for example)
4) When trading options make sure you have the correct options strategy when trading the squeeze or any of the supporting squeeze indicators – one size does not fit all.
5) Make use of the Ghost feed tool within Tradingview to establish a performance expectation and check up on your trade daily to ensure your stops are correctly placed.
6) Your tools need to be customized to your trade style. Some indicators work really well on some time frames and not on others. Trial and error can be costly. There are number of really good free tools available on Tradingview which can help you.
Trade safely!
On the 22nd Dec we had a price reversal signal to the sell side. We remained in the trade however as the squeeze signal was still valid. We did receive a + signal inside our squeeze which is a confirmed ”ADD” signal. That gives us confidence that the sell off in price could reverse shortly.
On 27th Dec we saw a strong shift in the ADX with the candles going from red to green and the price bands changing from red to green indicating a break out is imminent. On 28th Dec we received a long price reversal signal and on 29th Dec we added a put credit spread to our already placed long call.
The overall position is now a funded trade (where we are using a credit trade to pay for a debit trade) and the combined position is up 283% as at the close of 29 Dec.
We believe that DG will move towards 240 over the next 3 weeks on the back of the following bullish signals:
1) Our squeeze signal has a strong historical performance over the past 2 years
2) The B score is strongly rising with a strong ADX reading
3) Multiple long signals within the squeeze indicating further bullish momentum
Some major lessons here:
1) Trade highly reliable signals – remember not all indicators are equal and based on backtesting you will be able to see which stocks perform well under certain scenarios and with certain indicators.
2) Not all assets work the same on an indicator. As a trading coach I am often faced with clients who trade one simplistic set up with mixed results, blaming themselves for their own performance where the real issue is the fact that the set up is not correct for the stock (for example, trading an 8/13 SMA crossover on all assets when the stock has a weak history of performing under that trigger…)
3) Most indicators are multifaceted and there are a number of complimentary indicators that can enhance your trading of an indicator (we use a number of proprietary tools to further enhance our understanding of the squeeze for example)
4) When trading options make sure you have the correct options strategy when trading the squeeze or any of the supporting squeeze indicators – one size does not fit all.
5) Make use of the Ghost feed tool within Tradingview to establish a performance expectation and check up on your trade daily to ensure your stops are correctly placed.
6) Your tools need to be customized to your trade style. Some indicators work really well on some time frames and not on others. Trial and error can be costly. There are number of really good free tools available on Tradingview which can help you.
Trade safely!
Comment:
Nice move on DG today putting our combination trade up 700% since entry.
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