Another idea to find a good timing for buying an IPO stock.
I studied a weekly graph of an IPO stock PLNT to find out a good time for long-term buying after its IPO period. The tool used in this studied was a custom indicator "Graph Reader Pro 2.0 for TradingView (GRP2)". In some IPO stock cases such as Facebook, the stock price decline for a long time after IPO. It usually take them 1-3 years after IPO to rally a lot. In their cases, the CC59 counting tool in the GRP2 indicator could be used to generate the CC59 resistance line. The good buying points for long-term investment were the points when the prices can stay above their CC59 resistance lines for the first time. However, in some IPO cases such as in this studied, the price after IPO did not decline enough for the CC59 resistance line to be generated.
Alternatively, I considered other tools in the GRP2 which are the Local Max/Min and the SMA5x13. The Local Max/Min compares the high prices of 3 consecutive bars. If the middle bar has the highest high price, a text label "Max" is printed above the middle bar. Similarly, if the middle bar has the lowest low price, a text label "Min" is printed below the middle bar. The SMA5x13 monitors the crossing between simple moving average 5 and 13 lines. It prints a text label "SMA5>13" if the close price results in SMA5 > SMA13. On the other hand, it prints "SMA5<13" if the close price gives SMA5 < SMA13. Both Local Max/Min and SMA5x13 tools can be turned on/off in the GRP2 by the users.
Back to the weekly graph of PLNT during its IPO period, If we put a horizontal ray at the high price of the bar with a text label "Max" one by one when each label appears on the graph, we could get the "declining Local Max resistance levels". Once the stock price can break above the lowest Local Max resistance level and the label "SMA5>13, it's a good opportunity to buy the stock.
For more information on how to get invited to use the Graph Reader Pro 2.0 Please drop me a comment below or let me know in the TradingView private chat.
Alternatively, I considered other tools in the GRP2 which are the Local Max/Min and the SMA5x13. The Local Max/Min compares the high prices of 3 consecutive bars. If the middle bar has the highest high price, a text label "Max" is printed above the middle bar. Similarly, if the middle bar has the lowest low price, a text label "Min" is printed below the middle bar. The SMA5x13 monitors the crossing between simple moving average 5 and 13 lines. It prints a text label "SMA5>13" if the close price results in SMA5 > SMA13. On the other hand, it prints "SMA5<13" if the close price gives SMA5 < SMA13. Both Local Max/Min and SMA5x13 tools can be turned on/off in the GRP2 by the users.
Back to the weekly graph of PLNT during its IPO period, If we put a horizontal ray at the high price of the bar with a text label "Max" one by one when each label appears on the graph, we could get the "declining Local Max resistance levels". Once the stock price can break above the lowest Local Max resistance level and the label "SMA5>13, it's a good opportunity to buy the stock.
For more information on how to get invited to use the Graph Reader Pro 2.0 Please drop me a comment below or let me know in the TradingView private chat.
To get access to ProfitBee59 stock graph ai for TradingView and my other invite-only scripts, please go to [ www.readstockgraph.com ].
Please do not ask about access to use scripts in the script's comment section.
Please do not ask about access to use scripts in the script's comment section.