For the third day in a row, we failed to generate a trade signal based on the criteria previously posted. Bummer! (Perhaps, I should have started the Journal one week earlier when we had three breakouts three days in a row.) We came close today, as NVEC and CRDN both had a volume surges. However, the increase in volume failed to reach the level required. Although difficult at times to remain focused on the rules, attempting to enter a buy with NVEC or CRDN would not have been wise. CRDN is WAY off the highs of the day, and NVEC has drifted slowly lower since reaching its high.
Reviewing GMAI for educational purposes, we notice a continuation of an improved price trend on the third day since we opted not to trade the stock. Since we would have shorted GMAI, it appears as if our decision has been validated thus far. I plan to review other 'large gap open' Hershey stocks to determine an alternate method for trading these scenarios. As mentioned in a previous post, exiting early on a MACD and Stochastic crossover, might allow for profit even on these large gappers.
In the last year, I have had only one week where the system failed to generate at least one buy signal. As a result, (although disappointing) I remain patient in waiting for the signals to appear.
Many thanks to Nwbprop for posting his charts, methods, and links. His contribution has been appreciated. In case anyone encountered difficulty using the link posted by Nwbprop, I have added a shorter version here:
http://tinyurl.com/5g7rl
Once again, I want to thank everyone for their contributions and for their patience. I appreciate the effort required and if I can be of any additional assistance, please let me know.
Looking forward to tomorrow!
- Spydertrader
" As a result, I wrote on the importance of 'following the trading rules' and what can happen if one doesn't by using NVEC and CRDN as examples. Thanks for the question allowing me to clarify.