So, we have had a bit of excitement today with a trade being triggered.
First a quick mention about our open trade in UBT. It is continuing to trundle along.
To the chart, Robin…
We have been waiting for this symbol to trigger for a few days now. It is UGL which is the stock market proxy for the up move of gold.
You will remember that the 21 EMA (blue) was above the 55 EMA (green) which is our quick and dirty way of determining trend which is up. We then need our triggers either price or the 8 EMA (red) to signal a long trade to match the uptrend by crossing above the 21 EMA (blue).
We had those things but were stopped in our tracks by a level of resistance. We had noted here that we needed a close above resistance and then we would put in a stop-buy just above the close of the candle that did the closing above the resistance line.
I have enclosed the up candle from today that triggered us with a yellow almost square.
Details of our trade are as follows:
$13,000 (10% of the portfolio) / $65.37 (our stop-buy as recorded earlier) = 198.86, rounded to 200 shares.
Our trailing stop will start life just below support at $56.93. The risk is $65.37 – $56.93 = $8.44 X 200 shares = $1688 (<$2,800 (2% of the portfolio))
All systems are go. We have placed the trade according to our process and the risk and position size are also within guidelines.
God speed, little trade! Be well, and prosper!
If you have any questions or concerns (other than me talking to our trade), please drop me a line at: email@example.com.