Don’t guess when to exit a position! And especially don’t listen to people who are “guessing” on television. Proven exits are closes above the 5 period simple moving average for long positions and closes under the 5 MA for short positions. Another proven exit is when the 2 period RSI closes above 70 for long positions and below 30 for short positions. These are both “dynamic price exits” which have proven to work for many years.
Every day in our Battle Plan we’ll provide you with incisive, before-the-bell commentary and analysis on the day’s markets to help put your trading in context. We’ll give you suggested entries and exits for short term trading opportunities in stocks, ETFs and options that may be only hours away. And we’ll give you what many other people can’t: model-driven percentages so that you know the historical win rate going back to 1995 for every single trade idea!”
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.