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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (8508)	4/20/2024 1:12:34 PM
From: y2kate	Read Replies (1) \| Respond to of 10696

Thank you so much! This is simple and makes perfect sense...although I'm not sure how to define or determine "cycle" for a given sector. What relationship does the cycle have to the Bollinger band? Or does the Bollinger band define the cycle? For example, SOXX for a position trade. What is the cycle? Looking at a daily chart going back three years, looks like anytime SOXX tagged or dragged along the bottom Bollinger band would have been an excellent place to be buying, if you sold when it hit the top band. Otherwise, you would have been riding out a lot of dips. If we are looking for a buy and hold, pretty much any dip in the history of SOXX has proved to be a buying opp, aside from the weakness of the last several weeks, which has yet to prove itself. I do like your idea of holding on to a long term position for the long term runners and doubling up/lightening up based on the bands to take profit along the way. I'm guessing the B-band strategy could work for day trading too? I just cannot trade well in the shorter time frames, although I wish I could. I've noticed whenever I'm jockying for a dip buy, I would more often win in the short term if I were just buying puts instead!