Using the Trend Predictor for Stocks
Published by Lee Sandford in Stocks · Tuesday 05 Nov 2024 · 1:00
I use a trend-based strategy, analysing weekly charts and looking for "trend predictors" (green arrows) to time my entries. Here’s a quick overview:
- Hold Time: About three weeks on average, but longer in a bull market.
- Trend Predictor: A green arrow signals a possible move up; I look for the following week to confirm.
- Timeframes: Weekly charts are my anchor, but I drill down to four-hour charts to refine entries.
- Long Trades Focus: Mainly long trades in my pension, SIPP, and ISA; short trades in my spread-betting account.
- Examples: Recent trades in Shake Shack, Warner Brothers, Coca-Cola, and others show this method in action.
- Watch List: Some stocks are on my watch list, awaiting a breakout.
This strategy focuses on using weekly signals for precise entries in both long and short positions, making it ideal for equity trading on higher timeframes.
