playing the gaps down game

  1. 246 Posts.
    As a full time swing trader; I am employing a profitable strategy when the smart money send the SP down to a 52 week low. Simply, follow the 3 bollinger bands; then watch as the lower band starts to turn and straighten. After 5 - 7 trading days the lower band will turn north; which is my entry point. After another 3 - 5 trading days the middle band will turn upward, then the higher band. Ride the trend until the high band starts to straighten; take profit. Works well with any stock that has good daily spread, volume and volatility.An average 80% success rate has been achieved and use of stop loss essential together with patience. As an example check out ANZ chart.$23.54 entry, $24.80 exit, stop loss $23.40. GAIN 126% IN 10 TRADING DAYS. As the upper band starts to turn south after consolidation short the stock to gain profit on the downward trend. Use MACD, RSI and SLOW STOCHS indicators for confirmation of trend change. Merry Xmas and happy trading in 2013.
 
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