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Today I am going to use DELL as a sucessful example from my bottom picks.  This one has been playing well and rewardable, as Dell is a large cap, the risk is quite low compared to the return for holding this stock 8 days for a return of around 6.8%.  This is a patient game and observing would be always better than participating.

 

On Nov 18, we saw a black bar on the ST position which means a top was warned by the trend model and the next day we saw some sell off and all ST/MT/LT were showing red bars in which the model suggested a confirmation of down trend starting or started.

 

On Nov 25, we saw all ST/MT/LT all showing green but based on past expenience, a stock drops like that won't be bottom so soon.  Yes, you need to have some basic knowledge how the market works.  Just imagine a crowded room, people were trying to leave but some other people still thinking the room still good for them even though the movie is finished.  Long story short, we have been patient and wait for the stock to satuate and nail a solid bottom before we jump in.

 

On Dec 10, we saw some short term players start jumping in again so we better go for it or just scale in, another factor to determine is the price been flattened for couple days which means a bottom was possibly formed.  The next day we saw the confirmation of the uptrend and we probably either scale in more or just leave it like that and let it roll.  I am still holding it while I am writing this tutorial.  Braod Market Trend was also taken into consideration and it seems the market has hit a short term bottom as well where the risk is even lower for this setup.