Thanks for this tremendous work, Sean. To reinforce my understanding, Rule #2 can be triggered before Rule #1, and a LOD stop can be triggered before Rule #2. Also, under your checklist:
"4. Note the date. Day 0 + 3 periods = the earliest possible 4EMA trigger date. Until then, only Rule 1 (round number) and Rule 3 (20 EMA stop) are live."
I would add that the LOD stop is also very much alive, correct? This might reveal my pessimistic nature, but I am constantly prepared for my position to fail.
For one of my current holdings, BLZE, it's taken 4 days for the 4EMA (high) just to catch up to price, so technically wouldn't the rule be for 3 positive closes above once the moving average has caught up with price?
If I were holding DELL right now, I would very much be wanting to switch from a daily to a weekly rule based approach so I appreciate the point you made.
Hi Tad, yeah absolutely LOD stop is a hard stop in place. That stop rarely comes into play after first trim occurs. Usually I stop out pretty quickly if wrong.
The rule is a cross back below after it’s been above for 3 days. The 3 days is not from buy point it’s just in general. I made my own TradingView indicator that automatically highlights it for me. Sadly the mods on there removed it because they’re control freaks 😂 but easy to make your own.
Regarding DELL like others it’s going parabolic. I’m hoping for $500 which will trim me down to very small position. The pullback is likely to be vicious on this one and others that have gone parabolic
Very nice write-up.
Sean, it looks like Rule #1 does not apply to weekly structural breakouts (like your NVDA example) since no trim was taken at $100. Am I correct?
Arrows are only on the 4EMA sells. The round number sells have a touch more discretion about them.
Thanks for this tremendous work, Sean. To reinforce my understanding, Rule #2 can be triggered before Rule #1, and a LOD stop can be triggered before Rule #2. Also, under your checklist:
"4. Note the date. Day 0 + 3 periods = the earliest possible 4EMA trigger date. Until then, only Rule 1 (round number) and Rule 3 (20 EMA stop) are live."
I would add that the LOD stop is also very much alive, correct? This might reveal my pessimistic nature, but I am constantly prepared for my position to fail.
For one of my current holdings, BLZE, it's taken 4 days for the 4EMA (high) just to catch up to price, so technically wouldn't the rule be for 3 positive closes above once the moving average has caught up with price?
If I were holding DELL right now, I would very much be wanting to switch from a daily to a weekly rule based approach so I appreciate the point you made.
Hi Tad, yeah absolutely LOD stop is a hard stop in place. That stop rarely comes into play after first trim occurs. Usually I stop out pretty quickly if wrong.
The rule is a cross back below after it’s been above for 3 days. The 3 days is not from buy point it’s just in general. I made my own TradingView indicator that automatically highlights it for me. Sadly the mods on there removed it because they’re control freaks 😂 but easy to make your own.
Regarding DELL like others it’s going parabolic. I’m hoping for $500 which will trim me down to very small position. The pullback is likely to be vicious on this one and others that have gone parabolic