Hello Jan.
A couple of questions that maybe you'd help me on.
1. I'm looking at ASDV. Chart looks like what it suggested for this kind of market. Stock is near support, on buy signal, RS in Xs. Friday it reversed to Xs which is even better. My question: on a chart like this, is it always better to wait for the chart to get back in Xs or could this have been played at 15 1/2 when the chart was in Os above support with a stop of 15 ? I ask this because in the case of ASDV, there is not much difference between Friday's close (around 16 1/4) and the bottom of the column of Os (15 1/2), but for other stocks, sometimes the reversal is more dramatic-- so as a rule of thumb, when a stock is at support, do we wait for reversal to Xs ?
2. AMGN I have a trading position at 80 3/4. The trade stop is 77-78 right now. That would take a winning trade and turn it into a loser for me. One is not supposed to let a winner turn into a loser. On the other hand, this is a strong stock with a PO over 100, that could pullback (and shake me out at a profit), then reverse back up to new highs, leaving me behind. When I planned the trade at 80 3/4, the stop at 77-78 was reasonable risk. Now I need to reevaluate the plan. How do you usually deal with this issue ?
Thanks and best wishes,
David (who is learning that Point and Figure Charting is enhanced when one has Patience and Fortitude) |
