Agreed, great question, Malaguti...and great answers, MalcomSmith and theory6453.
This very same question runs through my head every day when I look at my trades, and tbh, it is going to be experience that is going to shape my ultimate 'getting out process'.
What Theory6453 touches on, with the stocks that rise sharply, the 10 week MA is what acts as the path of support. From what I am seeing, the first touch of the 30 week MA is potentially the start of a stage 3 forming, which could then be a continuation of stage 2.
Hi all,
just touching a bit on what was last discussed here, knowing when to get out of a trade either in full or lightly, and how to use the MAs as a determinant.
Looks at the chart below of L.GLEN. Lets say that an initial trade was placed (a toe in the water so to speak) on the breakout of resistance at around 348 early July, now what would peoples next trade location be based on this chart? Would it be:
a) the next touch of the 10 week MA?
b) the retreat on low volume back to support (prior resistance)?
c) or something else?