on JO, that brings up just how many ways there are to play
things. My style tends to be to scale out, so I've scaled out of a
bunch already on this move. Otherwise a true swing stop would have
to go at the last higher low; at first that was the June 18th low,
then moved up to the June 24th low at 34.14. Again that's a
daily, if you zoom to an intra day chart or 60 min you can get
tighter stops.
the daily higher low swings work best if something is going to
really trend for a while. Such as SPX did from late Dec to late
April - you had 6 higher lows in there. On JO the question
now is can it more a lot more or is it just an ABC up. But again if
you bought a decent size position, or let's say you bought 1000
shares at the higher low where the MA ribbon was pinching and price
tested the 50 MA, if you've sold say 700 or 800 shares and
only have 200/300 left, could you give it that daily higher low
stop room? sure as you've locked in awe gains already and simply
have a small trailing piece you are willing to give room.
all these considerations (trade size, psychology, etc) are what
makes a market and not a one size fits all
Where would you place a
JO follow up
Posted by shecar on 26th of Jun 2019 at 10:39 am
Where would you place a stop on a swing long off that pinching ribbon?
on JO, that brings up
Posted by matt on 26th of Jun 2019 at 10:52 am
on JO, that brings up just how many ways there are to play things. My style tends to be to scale out, so I've scaled out of a bunch already on this move. Otherwise a true swing stop would have to go at the last higher low; at first that was the June 18th low, then moved up to the June 24th low at 34.14. Again that's a daily, if you zoom to an intra day chart or 60 min you can get tighter stops.
the daily higher low swings work best if something is going to really trend for a while. Such as SPX did from late Dec to late April - you had 6 higher lows in there. On JO the question now is can it more a lot more or is it just an ABC up. But again if you bought a decent size position, or let's say you bought 1000 shares at the higher low where the MA ribbon was pinching and price tested the 50 MA, if you've sold say 700 or 800 shares and only have 200/300 left, could you give it that daily higher low stop room? sure as you've locked in awe gains already and simply have a small trailing piece you are willing to give room.
all these considerations (trade size, psychology, etc) are what makes a market and not a one size fits all
thank you
Posted by shecar on 26th of Jun 2019 at 11:24 am
thank you