Use Stochastic Positive Divergences In Your Trading
Genentech Inc
(DNA) opened above the upper Bollinger band, and sellers immediately
stepped in as you can see on the 5-minute chart below.
10:10:02 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
DNA | buy stop at 79.46 | pullback | 79.21 | 79.75 | 79.38 |
TK |
At 10:00 A.M., the stock hit the
intraday low and formed a mildly bullish bar. Look at the stochastic. It was
showing a positive divergence. I wanted to buy DNA right away, but the middle
Bollinger band could be a potential resistance. At 10:10, DNA challenged the
middle band, but it could not take out the band successfully. I decided to place
a buy stop slightly above the 10:10 bar.
10:29:20
Follow up on DNA
Sell half for a 13-cent gain. Move stop to breakeven.
Feel free to mail me your
questions.
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