Hi all, i'm looking for some advice as to what I should be looking for in terms of implementing the pilot/pyramid strategy that @Freehold has explained previously in the Knowledge Library.
This is TTT, which is approaching a 50% gain for me and seems to be at the lower end that Freehold would use consider using the strategy (based on the examples that he has given previously). The chart has seen steady gains with no real retrace to speak of. The volume has been good and fairly steady since listing. Perhaps the only thing in particular that I've noted is the 2.5c gap up today, which perhaps indicates that people are getting a bit excited?
1. How would I identify when the current run is going to take a breather? Are there just no clear signs yet? e.g., reduced volume, spike tops etc.
2. Can the strategy even be implemented when there seems to be so much support so far? Even if the gains stopped for a little while after today, I still wouldn't have much confidence that it would retrace very far... does a stock need much more volatility for the strategy to work well?
3. Should I be looking for something like a break of trend instead perhaps if there's no clear daily indicators?
4. Would you even implement that strategy in this situation or is it better left for those stocks that make 50+% gains in 2-3 days?
So far this strategy I'm find this strategy to be simple in theory and complicated in practice
I probably won't actually implement it for this stock and am really just wanting to do this as a learning exercise for now to see if I can start identifying the opportunities when they occur.
Cheers
