This post will talk about the method trading by Sherri, she is one of the most famous trader, will show us how to find the best entry for your stock and crypto
The entry standard
- Several indicators give the similar signals
- RSI above than 50
- The price moving up on strong volume
- MACD-Histogram and both MACD lines rise, cross above the zero
- Stochastic turn up from below 20
For example
Sherri’s buy was on 8/12/03 at $16.21. At that time several indicators were giving similar signals, confirming each other. The RSI had just crossed above 50, the price was moving up on strong volume, MACD-Histogram and both MACD Lines were rising, crossing above the zero. Stochastic was turning up from below 20. How nice! The indicators were screaming to buy, and I happened to be listening.
She added to my long position on 9/2/03. The stock had been moving up nicely, then developed a lateral consolidation. After four trading days, it broke out of its consolidation on extremely strong volume. RSI was advancing, MACD was strong, and Stochastic was continuing to climb. The most important factor was the breakout from the consolidation pattern on such strong volume, while all the indicators supported my action.
She sold on 9/22/03 at $20.74. The stock had been moving up for a couple of weeks, but the volume was gradually diminishing, and that got my attention. On 9/19 the price traced a doji, a bearish candlestick pattern. That set off an alarm, especially since the doji was on a much higher volume. I thought the price was topping out. While the price was going up, MACD-Histogram started falling off. The combination of all these factors was my cue to get out, saving my profit. She exited the next day at $20.74, just as MACD lines crossed on their way down and MACD-Histogram crossed below zero. It was time to bail out. My timing of the exit was fortunate, as the stock has continued to tumble since that day.
The analysis of Sherri about this order
When I open a file for a stock I haven’t seen in a while, I start by compressing the weekly chart until the entire history fits on one screen. This helps me to determine if a stock is cheap or costly based on its historical performance.
The stock was sold to the appreciative public in an IPO at around 70 (split-adjusted) and soared up to 190 in a final spectacular vertical run in 1999, according to ASKJ’s history. From there, it plummeted, eventually reaching a low of 75 cents in 2001. ASKJ, like every other stock that has fallen more than 99 percent from its peak, has every right to die. However, this puppy chose to live. In 2001 and 2002, ASKJ lay silently on the bottom, just trying to breathe, until it rose its head and began ascending into the double digits in 2003. Both moving averages are heading higher at the right edge of the weekly chart, confirming the bullish trend and allowing us to buy.
When the weekly charts signal a purchase, I look at the daily charts. Depending on the message of the daily charts, I decide whether to go long or not. I will never go short if the weekly charts indicate that I should purchase. I will not trade against the weekly Impulse system’s message.
The extreme bar at the right edge of the daily chart is green, signaling a bullish indication from the Impulse system. When both the MACD-Histogram and the EMA are trending higher, this occurs. This indicates that market inertia, as measured by the EMA slope, is on the bulls’ side, and that those bulls are becoming even stronger, as evidenced by the rising slope of the MACD-Histogram. A day earlier, when the color of the daily bar shifted from red to blue, an even better buy indication appeared. When the bars stop being red, it means the bears are beginning to lose control and the bulls are poised to take over.
Although this chart is positive, it is not the most attractive daily chart. There are a few troubling signals, such as the bearish divergence of the MACD-Histogram that happened immediately before the decrease near the conclusion of the chart, giving an additional strong sell warning. Bearish divergences tend to lead to further declines. The MACD-Histogram has reached a new multi-month low, indicating the bears’ strength.
Trading for my own account, I probably would have skipped this trade; at the same time I would not have argued with Sherri had she told me she was going to take it. Still, a serious trader like Sherri never asks anybody before making a trade. I am mentioning this only to show that different people trade differently. This is certainly a “legal” trade from the point of view of the Impulse system.
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