Entry was classic entry on a pullback in a long term uptrend with regular cycles. You can see the overall uptrend as the blue dotted lines on the graph. This trade assumed the uptrend would continue to track within these channels.
Entry signals were the candles penetrating the bollinger band under both the 5 and 13 week EMA lines (pink and green), after a huge reactionary selloff by the market as a whole in January. Call it the 2013 hangover selloff.
MAC-D showed negative, meaning the movement would soon to be to the upside.
RSI of 19 meaning the stock was oversold and had a high chance or returning to its overall trend from the last months.
There was risk that the selloff was the start of a boarder market selloff, but overall market conditions tended to indicate that the overall bull market was continuing.
Sell point was over target price at exactly 90 on the RSI graph, with two green candles penetrating the upper bollinger band, indicating a pull back is highly probable. Watch in the next days for the pullback back to about $85 where the green moving average is.
Effectiveness of this trade compared with long term term fund performance:
My trade
8.1% in 1 month
Overall fund performance
20.8 % over 1 yr
10.2 % over 2 yr
12.6% over 10 yrs
