Hi DD, Looking at CD...well let's see, RS in O's since March 98 with a current 1.49 and she needs a 2.00 to reverse back up to X's. Sector Bull Confirmed at 56% so one would like to get in only on pull backs and in STRONG Issues!!! oh well, sometimes we get confused...
The first buy signal off of the bottom gives a vertical count and PO (price objective) of 19, HOWEVER the BRL (Bearish Resistance line) is at 17.
You mention that you were waiting for it to close the 14.5 box and yet you got in at sub 15 . Looking at the chart and the sector, I would have placed an order at 13.5 with a sell target of 17, stoploss at 12 a DB...giving a risk to reward of 2.3:1
The first rule of P&F is don't chase them, let them come to you and have a plan, I generally know what I would like and at what point I'd like to get in at. By placing a buy until cancel order at your optimum risk to reward point, you get the chance of getting in without the emotion of fearing that you may miss out and thus getting in on the pile up.
Like on a TT, once I see a Triple top being set up, I'll check the FA and then decide if it's one that has a good risk to reward ratio. If I still like it, I place an order at the next box up that gives the buy signal and sit back and wait. Of course I have also placed the Stop point and sell point in some cases.
By getting in at sub 15 and the first sell signal at 12 you risk 3 points for a potential gain to the BRL of 2 points...You must also like Vegas :-)
Not picking on you, just trying to help if possible.
Sorry to be so long Winded,
Later
Preston |
