This is a quick post today. I have added a poll on the left hand side for you to rate the layout of this blog. There are some new templates that I can use and I am thinking of changing the layout. I would like to get your input on this so for the next few weeks I will be changing the layout of the blog and I would like you to vote on how much you like or dislike the new layout. Feel free to also leave me comments or e-mail me with comments about the new layout. At the end of it I will change the design to which you think is best based on the scores you leave.
So select 1 to rate it as strong dislike and 10 to rate as strong like and anywhere in between for any other opinion.
I didn’t place my new trades or open positions for the week over the weekend as I just didn’t get time. I’ll update the blog with them as soon as I can.
Alan thanks for leaving the comments, It’s much appreciated as always. I will try and respond later.
Until next time
“May the markets be with you”
Hi SB, I have been following Tony's trail and have now been following yours, also entertaining. I have a query about your momentum divergence strategy, having identified a stock that is showing divergence, on the weekly chart, what trigger do you use to buy into it, or how do you set the price for your orders??
"G"
If the stock is showing or has shown momentum divergence I set my order price to be the high of the week with a stop set at the low of the week the divergence occurred (Hopefully that makes sense)
The first time I'm alerted to a stock is when the price has made it's 3month (13week) low while the 6week momentum has made a low at least 2 weeks before. I will then set a buy order for the high of the week with a stope set below the low. If the trade fails to execute and the momentum fails to make a new low I will place the same order the following week with a new buy price set to the high of the current week. I will continue to do this until the trade executes or the setup critera goes away(so momentum makes a new low)
If the price has already surpassed the high of the previous week then I tend to pass on the trade and look for better opportunities.
I hope all this makes sense. If not let me know and I will try and do a better job of explaining it.