I wouldnt be so hard on yourself..You caught a correction..Most important,are you staying disciplined,following your plan and have you done any backtesting/simulations??? Simulations aren't the grail,but it will give you a good idea of how the system may perform in different markets.. Hang in there,everybody hits speed bumps.Cut your size for now
CPB (not CPM) might be a good one, although under current market conditions it would be fighting against the recent overall trend. As you mentioned it going higher with volume - it closed above first level of resistance on 3rd highest volume of the past 6 months or more. Also currently a Bollinger Band Squeeze inside Keltner Channel signals very likely a breakout underway or soon to be. Main question I have is whether it can fight the current trend or not?
Your strategy didn't work here because after the run up to $39.93 it pulled back into a range and is consolidating. In a range, you look to fade not buy breakouts (unless it's a clear breakout over the top of the range.) If I were to play this, I would wait for it to dip below recent support at $35.58 and show you a hammer candle or an engulfing candle and then go long. But remember, in a range you fade...so when it runs up and the ema 7 crosses back above the ema 20 I would look to sell at least 3/4 of my position. Maybe keep a portion running in case it keeps going up with a stop loss at breakeven.
So basically the run up to the day that I bought was too steep/significant? It did pull back some, setting up my 7EMA crossover but the stock was already exhausted by then? Okay, that makes sense to me. thank you
Sure, after the fact you can say that. You really need a bull market for these MA crossover strategies to work otherwise you get chopped up like you are now. BTW, did you follow my advice from a couple posts above? On Feb 24th it gave you that hammer candle below support and then shot up and made a new high at $37. I ended up taking the trade and made some nice profit, so I'm glad I saw this thread!
haha, i did not take that trade but happy to find it for somebody. Im staying close to 70% cash due to the current status of things, but i did make some money back last week!
I’m following this thread with the goal of trying to learn from it. I don’t see the stock ever getting to $39.93.what am I missing?