Skip to main content

Today I am going to show you another successful trade using "Common Low Risk Setup Pattern".  Been waiting, waiting and waiting for 15 days and the green bar first shown up on Dec 29 (there is another one on 16 but only 7 red bars, I might put 30% to work on that situation).  Price been flat for 5 days (within .1 to 2%) which matched our criteria.  Make call options to work for 3 months one rank out of money (this is my favorite).  Hold it until Jan 6 there are some red bars at the bottom, so we look at weekly chart which has whole green bars so we continue to hold, plus positive price action we are OK.  We saw many black bars along the way, this is OK to hold if the trend level is increasing and positive price actions.  Until today Jan 15:

  1. ST and MT portion are black.
  2. Negative price action (yesterday 50.54, today 50.0)
  3. Broad market trend is in downturn (actually signaled 3 days ago but sometimes it is ok to finish the trade if it shows positive signals).
  4. Good trade usually takes from 5 days to 2 weeks, time it and you will know when to get out (It's just like cooking, too early or too late is no good at all).

CHL was on my bottom pick list posted on the old site 3 weeks ago and hopefully you did a good trade on it.