Friday, August 5, 2011

Trade Idea SIGM (long)

 SIGM has also shown excellent relative strength, there was an RSI positive divergence at the lows and it's crossing the 50 m.a.

 My moving average crossover screen that I use to prevent false signals went long on all 3 components.

Finally my Trend Channel held the downtrend and has held the entire move up thus far, even in a flat market. ADX signaled the end of the downtrend when it crossed down from above 40 and it is now at a level consistent with the start of a new trend. I like the trade here with the stop channel, but ideally I'd like to give the initial stop a little more room n case of a head fake.

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