By staging a stock into each cycle whether it is up, sideway or down. You can immediately know how to trade off this stock at the lowest risk.
But how? Simple, looking at the chart now, will you short a stock at Stage 2? Will you buy a stock at
Stage 4? So does that solve your problem by not getting you into the wrong stage of trading.
Let say that you bought a stock at Stage 2 and price is too far out from the moving average (black line),
don't worry, most mistakes made at Stage 2 will be forgiven. Why? price will pull back to the moving average to consolidate strength for the next higher upmove above the previous peak that you have entered.
As long as price continues to track along Stage 2 trend channel, don't worry pal.
If for me to trade any stock, it will be very near to the channel base with progressive volume coming
in to support the price trend. Buy when the stock is quietly moving up the channel. If it appears in the
Top Volume of the day, risk maybe getting high and I may not take a trade.
A sample of my classic Entry and Exit as shown in the chart below:
Notice: How the Propiertary Blue Diamond appeared along the base channel to trigger "Long
order" for me?
