EDUCATIONAL - HOW TO TRADE THE TREND USING RANGE MOVEMENT -
RDC has trended nicely and now the trend has turned UP for the first time in awhile using the proprietary "range movement" indicator. Now we want to buy after it is oversold. I may use a little judgement and get in ahead of a deeply oversold level for the reason that this stock has been in a downtrend for a long time now and it could be ready for a more sustained rally phase that would involve NOT getting oversold. Again, this is just a judgement call and it is not systematic.
Since RDC is above its lowest range in this last pullback, I can say it is ok to be long here with a stop 3 ATR's below entry.
Drilling stocks have lagged oil stocks in a massive way this year and perhaps the gap could close.
Tim 12:05PM EST 7/2/2014 31.88 unch last.
RDC has trended nicely and now the trend has turned UP for the first time in awhile using the proprietary "range movement" indicator. Now we want to buy after it is oversold. I may use a little judgement and get in ahead of a deeply oversold level for the reason that this stock has been in a downtrend for a long time now and it could be ready for a more sustained rally phase that would involve NOT getting oversold. Again, this is just a judgement call and it is not systematic.
Since RDC is above its lowest range in this last pullback, I can say it is ok to be long here with a stop 3 ATR's below entry.
Drilling stocks have lagged oil stocks in a massive way this year and perhaps the gap could close.
Tim 12:05PM EST 7/2/2014 31.88 unch last.
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