<<<I was looking at your chart on DELL, and it was a good one I might add... There were points of sell on the chart that were noted, it seemed to me that you rely heavily on the 5 and 9 day moving averages.. and it also looked like if played correctly that those sells were good for a majority of the time. But what I am interested in are points of entry and exit.. also where are your buy points, to me it seems like any dip on DELL is a good entry, but do you have any data as to buy in points or sell points if a person bought puts based on your sell points on the chart?>>
hi buddy.. sorry for the late reply..
i think the "proper entry" is a very hard question to answer. let me share with you what i do..
1) first i check the weekly chart.. that common "trade with the trend". well, the weekly will show the BIG trend. i've found out that you get better rewards and less risk using that weekly approach.
2) next, once weekly bullish is confirmed, you look at DAILY chart to see if that is bullish/bearish.
3) finally, i use the 9 or 5 day ema as my entry point.. so actually, the answer to your question is: "i use the 5 or 9 day ema as my ENTRY AND EXIT". i've chosen those because as you know, my exit is a 9 day moving average break.. if you've entered near the 9 day ema, then any quick exit once 9 day ema is broken will render a loss of very small amounts...
so, both entries and exits are important.. when developing a trading system (mechanical or in the hot seat), your entry and exit must match.. ie: the entry signal must incorporate what your exit is.. and your exit must incorportate what your entry is.. you know what i mean?
hope it helps.
DELL is out of uptrend channel. it will base until...... ?? <G> |
