so…here what I am watching and waiting as a new trade before making a share purchase. If you read my book you know I am looking for a few things to happen.
First and foremost I want to see price close above the 20 day simple moving average. I want to see and what logically happens next is 5 ema crosses and closes above the 20 sma. The MACD should already be on a buy signal.
I then look for the nearest pivot point as my stop point. I don’t put in manual stops. It’s not that big a deal..my positions small enough and I am not a day trader.
CHK is a stock I follow. The chart below we see the trade coming together. It isn’t time to buy just yet but gives us a window into how it takes shape. I have couple of my indicators saying buy but price hasn’t confirmed yet. I circled previous locations on the chart where I was looking to buy.