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Does anyone else out there engage in "channel trading"?
The strongest predictive force I have found in stocks is the tendency
to trade inside channels (between support and resistance lines.)
This lead me to buy PAUH this morning at 13 3/8. (I was a little late
on this buy. I should have gotten in at 12 7/8 on Thursday.) PAUH is
up 16% today, and I am already looking to sell.
An even better example is ANAD, which I bought at $24, and sold at $33
1/2 ten days later. QNTM is another good example, reaching the top of
its channel soon.
My biggest problem is avoiding stocks that fall out of their channel.
This happened a lot in the three month correction we just went
through.
So, does anyone else use this method?
What stocks are you watching now?
How do you avoid tend changes?
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