Trading Windows Buy Setup – CELG +14%
Everyday after the markets close TradingMarkets publishes a
number of proprietary
indicator
lists. These lists are intended to help you make trading decisions, they
are not recommendations to buy or sell any particular stock, but they are
a very useful way of allowing us to run scans for you that may provide trading
ideas.
Each indicator includes a description that helps you pick the
right stocks for your particular trading style. For a more in-depth description
of the techniques we use go to the
TradingMarkets
University where you will find books and courses that cover the indicators
in detail.
Each day we are going to take a look at a few stocks from the
lists and show you how the indicators can be used with your own analysis.
Today’s stock is from the
Long
Windows Candidates section.
Celgene Corp.
(
CELG |
Quote |
Chart |
News |
PowerRating)
Here are the rules:
These are stocks which are in a strong uptrend, as determined by a
proprietary trend filter and whose current bar has its highs below the 4-day
moving average. Historically, these stock on average have had a larger than
normal short-term upside reversals. In order for us to be a buyer of a "TradingWindow,"
we must have a 10-period ADX reading of 30 or higher and a +DI reading above the
-DI reading.
SingleWindows are the most common type of Windows. They are
simply a single bar which has its low trading above the 4-period moving average
or its high of the day below the 4-period moving average. You will enter
tomorrow if the market trades above today’s high.
As you can see, Friday’s high is below the 4-day sma and the
10-day ADX is above 30 giving us a potential buy setup for today. The buy signal
is only triggered if CELG trades above Friday’s high (51.34). This happened
early today and the stock ran up to $58.82 (more than 14%) before pulling back.
Ashton Dorkins