lowtrade

[lowtrade]

SRPT chart & lesson on entry/exit


While I'm thinking about entry and exit technical indicators. May as well repeat the signals, as I haven't covered the subject for sometime.
And: The more you see something happen, the more you can rely on it!

My entry/exit indicators are the DMI & the 5,10,20 day moving averages.

DMI
When DI+ crosses above DI-, it says sentiment is changing. And an early small position can be taken. When ADX turn up with DI+, that confirms the phycology has changed and one can take a larger position. Reverse for exit. ADX is the key to conformation that retail had changed it's investing phycology and until you see the ADX reverse trend, odds are the price will flux.

Oh yea when the ADX gets below 10 or above 50, one can expect any new change in direction and price to be large.

5,10,20 MA's

When 5 crosses above the 10 day, early entry. When 10 crosses above the 20 day and the 5,10,20 is lined up in order, entry is confirmed. Reverse for exit.

A low risk trader should wait for confirmed entry and take 1 position entry. High risk 1 entry at early entry, average risk trader, 2 entries, small at early entry and large at confirmed.

Many times one enter/exit indicator will proceed the other. But generally they are fairly close. But one should either use company fundamentals or indicator previous history of which works best first, for that stock, for assistance with decision.