Using Short-Term System To Enter Longer-Term positions
October 28th, 2005 by BWV
I used my new little trading system to enter Phelps Dodge (PD) this morning.. looking to buy when the highs of the first Blue 30′ bar were broken.
In this case, rather than buying the breakout, I put in a bid 70 cents lower.. I’ve noticed that NYSE specialists often give stocks a little “shimmy” to rinse out scalpers before the bigger move reveals itself. When I get my buy signal on NYSE-listed stocks, this will be my M.O. — bid low rather than chase. On the NASDAQ, I’ll likely do more breakout buying.
Here’s the Daily chart.. my 34.6.3 Stochastics still in buy mode here.. and it just went down & tested the 50ma.. PD made a higher High earlier this week.. I’m betting on this being the first higher Low, creating a change in trend.. back to Up after a month of Down.
Long PD at $119
