jpg, a key factor is this question.... what is the time frame?
If I am looking at a swing trade, short term, I don't hardly look at chart that is greater than a 30 min chart. Consequently, the move I look for may only be for the bump and I'm out. I don't have a set rule to follow regarding price movement but I do with the MACD and stoch. In fact, on those swing trades, I'd submit you don't even have to look at the price per se. You can get hung up on the price when really you ought to be watching the other criteria.
Likewise, I don't get hung up on using a certain percent return necessarily, either. Some do that. They will wait for the stock to move until they think they can get that x percent. I don't do that. I consider the risk and amount at issue. For example, this SPX trade I made yesterday and today was a huge position as I posted. Made good money on it but with SPX options, the swings are huge, thus, a lot at risk. So, I closed it much sooner for that reason even though I believe the SPX has more to go down and they were Dec puts.
If it's longer term, I'll have more patience with it. Sort of like I told Clappy in that post about BA earlier tonight.
I look for channels, trend lines, and when they bump'em, I take notice, especially if the MACD and stoch are lined up (i.e. VZ recently that I've posted).
RR |
