The Rules are i. Buy on 2 or more of the following happen - Price, macd, 9sma, and stochastic breakout. ii. Sell at a 10% target. iii. Stop if the stock comes down by 5% or in 2 weeks, which ever happens 1st.
CHOU - Price Broke out of the previous side way channel. Stochastic signal line is above, broke out of 9sma, and the macd gave the 1st histogram line above 0. Signal is looking very bullish. Therefore buy at 9.80. Sell at 11.10 which will give a 10% return after cost. Stop at 9.30 or in 2 weeks, which ever happens 1st. As the stock has a strong buy signal, you may buy at 10.00 as well, to Sell at 11.30, and Stop at 9.50, or 2 weeks which ever happens 1st.
Please note that this is purely a trading strategy and a minimum holding period of 2 weeks nothing more. You must close the trade on the last day of the 2nd week or at the stop prices given above. As such buy only an amount that you can bare, and preserve your capital. OTHERWISE PLEASE DO NOT BUY. IF YOU DO NOT PRACTICE DISCIPLINE WHEN TRADING YOU ARE NOT FIT TO DO SO.
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