Recently I have finished reading "New trading for a living" by Dr.Alexander Elder.
In the chart I see bullish reversal pattern similar in the book
-MACD-Histogram/MACD signal Bullish reversal
-False Break at 105.5
-The price pull back to the resistance line 107.5
-Increase volume
Actually the ideal price for buy is 105.5-107.5
But I see the chart today so there is a price pullback so there should be an opportunity
Stop loss is 107.75
So if I buy today at 118.0 so it's a bit of risky (loss -8.5%)
In the book said you should never loss more than 2-6% of your portfolio
So
1) move stop loss
2) wait
In the chart I see bullish reversal pattern similar in the book
-MACD-Histogram/MACD signal Bullish reversal
-False Break at 105.5
-The price pull back to the resistance line 107.5
-Increase volume
Actually the ideal price for buy is 105.5-107.5
But I see the chart today so there is a price pullback so there should be an opportunity
Stop loss is 107.75
So if I buy today at 118.0 so it's a bit of risky (loss -8.5%)
In the book said you should never loss more than 2-6% of your portfolio
So
1) move stop loss
2) wait
Trade closed: target reached:
Sell at 119.5
Switch to the more volatile stock
bye bye BH
Switch to the more volatile stock
bye bye BH
in TF day there is a pullback and macd -histogram arise from sub zero