davesaint86
725 posts
msg #90441
- Ignore davesaint86
modified |
3/26/2010 7:33:05 PM
I haven't tested this filter. This may work well for restrictive 401k Plans. You might be able to use to swing trade also. Have any suggestions to make it better.
The 2 Accumulation Buy Points are computed based on a formula which uses each stocks individual Average Range over the previous 20-Day Period. T
Before you begin any Dollar-Cost-Averaging Accumulation Plan on a stock you think will will RECOVER in the future, you should wait for two very important Macro Technical Signals off the WEEKLY CHART. This will help you prevent initiating the investment process prematurely. Make sure that your stock is trading ABOVE its own 30-Week simple moving average and that it has cleared the MAJOR DOWNWARD OVERHEAD RESISTANCE LINE before you switch to the daily timeframe to start using the Pivot High Calculator.
Dollar-Cost-Averaging Accumulation Plan Purchasing Stocks - Rules
he Investment Stock Recovery Process can be summerized in the following 4 statements.
1.) Know when to start using the Weekly Macro Techincal Confirmation.
2.) Use a go slow Dollar Cost Average process to feed money into your stock vs. lump summing your position all at once. The Pivot-High Calculator helps you compute the best entry prices.
3.) Know when a recovery stock is not performing and when you should consider pulling the plug on the position.
4.) Diversify your stock porfolio across several stocks (3-5 is ideal) in order to increase your odds of being in stocks that perform as well as to reduce the risk that any individual stock has on your entire portfolio should there be a adverse price move against you.
Only continue your Dollar Cost Averaging Investiment Strategy as long as the stock is above the sloping 30-Week Moving Average.
Cut your Position in Half by Placing a 3.0% Stop Loss Below the 30-Week SMA. (On a 7% drop below the 30-Week you should consider closing out the remainder of your positions)
Thanks,
Dave
|