AMD & ZM trade resulting in 10% gains
These were two monster trades that we did last week by using Relative Strength to our advantage
This is one of my favorite strategies to trade as it has a very high success rate.
Pre-requisites for this setup to work:
Pre-requisites for this setup to work:
- Should be in an up-trend above 20 exponential moving average
- Should be first name to go green if market is weak / red
- Continued buy pressure as stock fails to break down lower
AMD Trade:
We took this bull flag setup on Daily chart & booked about 10% gains
We took this bull flag setup on Daily chart & booked about 10% gains
Here's what we were looking at on 15 min chart before taking this trade:
- Notice that every single gap down open was bought in past 5 trading sessions before the breakout happened
- AMD started to lead the market after these gap down opens which was the first clue for us that it was showing good relative strength
- It was only a matter of time before it broke out after continued buying pressure
- It then lifted off two week range again from a gap down open again on good volume.
- That was the trigger for us to enter @ 50.70
- It then gapped up thee next day on huge volume & made our lives easier to manage the trade.
- We then took partials off @ 53.80, 54.30, 58.20 & 55 for an overall 10% gain
Here's how Daily chart looked after booking gains off this bull flag setup
ZM Trade:
This was another bull flag setup on Daily chart. ZM started to catch our attention after some big volume started to come in the first week of Feb. We had the discipline to wait for it to consolidate & setup a flag to get in.
This is how the Daily chart looked as it broke out of this bull flag pattern
This was another bull flag setup on Daily chart. ZM started to catch our attention after some big volume started to come in the first week of Feb. We had the discipline to wait for it to consolidate & setup a flag to get in.
This is how the Daily chart looked as it broke out of this bull flag pattern
Here's what we were looking at on 15 min chart before taking this trade:
- Notice how ZM traded in a tight range after a huge move off volume
- Even when market gapped down & looked weak, ZM was showing impressive relative strength & holding up well.
- This caught our attention & we started stalking it for any signs of volume for another push higher
- We got that on Feb 13th & that was our trigger to enter @ 90.70
ZM Then gapped up after a brief one day pause & made our lives easier. We booked profits @ 97, 102 , 102.40 & 101 for 11% gains as it hit potential resistance at previous all time highs around 107
This strategy of keeping track of names that are showing good relative strength will always keep you in the right names & let's you profit when market shows strength. Hope this post was helpful
See you in the streams.
TraderAmogh
See you in the streams.
TraderAmogh
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Your use of this website or information provided in this website, newsletters, or trade setups constitutes your informed consent and agreement with the terms of this Disclosure and any Terms of Service, Terms and Conditions, and Privacy Policies. If you do not agree to be bound by these terms, you must immediately cease using this website or any information provided in the website, Twitter, Discord, newsletter, or trade setups.
Any information contained in this website, newsletter(s), or trade setups is the personal and subjective view of Positive Trends Research LLC and given solely for informational and educational purposes and we do not intend, nor should you rely on it, as specific advice, or recommendations for any investment decisions. The only purpose of information provided in this website, newsletter, or trade setups is for general education about the financial industry.
We are NOT registered with the US Securities and Exchange Commission (“SEC”) or any state securities regulatory authority as a securities broker-dealer or investment adviser. We are not licensed to give investment advice. We do not give investment advice in any manner.
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