A post during the week can only mean one thing: a trade has been triggered.
Let’s get right to the chart.
I had previously reported that TBT – our stock market for 20 year Treasuries declining in price – had done all it needed for us to put in a stop-buy.
Let’s review our check list.
- Blue EMA (21) is above the green EMA (55). This one of our definitions of trend. Blue over green means uptrend.
- The price and the red EMA (8) which were below the blue, but have now crossed above acts as our trigger.
- We now look to our left for any price higher than the candle that closed above the blue EMA
- We have one so that we place our stop-buy just above that “resistance” level at $16.47
- The price took a little meander across the buy line and as a result – even though it dashed back again – triggered us in.
- Our trailing stop begins life just under support at $15.34, or $1.13 under the trade price.
10% of the portfolio = $14,000/$16.47 = 850.03, rounded to 850 shares.
Risk = $16.47 – $15.34 X 850 shares = $960.50 (<$2800 (2% of portfolio))
We have an open trade per our process. All we can do now is wish it, “God Speed, little trade”.
If you have any questions about the trade or anything from your trading world, please drop me a line.