This Is One Way To Use The 50% Retracement Level
Gaps signal changes in
trend and momentum. If you were lucky enough to buy Legg Mason
(LM) at the open, you would be capturing a 3-point gain in 15 minutes. Needless
to say, buying at the opening bell is not so easy. You may not like it, but
waiting for a pullback is sometimes wiser.
11:14:52 (From Traders Wire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
LM |
Buy at MKT |
pullback |
73.74 |
74.50 |
73.95 |
TK |
I was wondering where might be a
good point to buy LM. After all, this pullback could be a beginning of a
downtrend. I noticed the stock started to move sideways just above the 50%
retracement level (from Friday’s low to today’s high). We bought the stock as
soon as it took out 73.90.
11:20:37
Follow up on LM
Sell half to lock in 30 cents. Move stop to breakeven.
Feel free to mail me your questions.Â