The new weekly chart is in and contains some interesting news. The chart (shown) shows that the week’s Holiday-shortened price bar was an “outside” bar with a higher close. Notice also that the RSI made its low back on January 18 while the price low (closing basis) was made on March 14. With both price and the RSI turning up this week we have a technical “buy” signal.
The chart also has Wilder’s Parabolic SAR on it (red dots),the one standard deviation regression channel and moving averages. The tentative trading model is using the SAR as the stop point on the theoretical short trade generated on Nov. 7 at 1489.55. The stop this week is 1376.51. The fact that the weekly chart is now on a technical “buy” does not alter the trade exit. The stop is still in play and has not been hit since trade entry.
The system does not allow one to hold both long and short positions at the same time. Even if it did the weekly “buy” signal is only used as a filter. It is now giving permission to buy. The actual buy trigger is the price pulse model. The current buy point there is the February 27 high of 1388.34. Therefore it is possible that the system could get stopped out this coming week and then go long on a continued bull move.
The chart also has Wilder’s Parabolic SAR on it (red dots),the one standard deviation regression channel and moving averages. The tentative trading model is using the SAR as the stop point on the theoretical short trade generated on Nov. 7 at 1489.55. The stop this week is 1376.51. The fact that the weekly chart is now on a technical “buy” does not alter the trade exit. The stop is still in play and has not been hit since trade entry.
The system does not allow one to hold both long and short positions at the same time. Even if it did the weekly “buy” signal is only used as a filter. It is now giving permission to buy. The actual buy trigger is the price pulse model. The current buy point there is the February 27 high of 1388.34. Therefore it is possible that the system could get stopped out this coming week and then go long on a continued bull move.
No comments:
Post a Comment