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Trading the Sweet Spot Stocks (2)

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AbleTrend helps to identify early trends based on higher probabilities, not absolute certainties. We still need to deal with the sideways market. As the market develops, AbleTrend adapts to the changing picture to determine the up-to-date probabilities – empowering its users to adapt their actions accordingly.

Here is an example the SSS entry with a guidance chart as a filter

chsp-dw-20151028D

Using 2 time frames Guidance Chart helps to filter out much of the market noise and choppiness.

More and more AbleTrend users like Guidance Charts as a tool to deal with choppy markets. Guidance Chart uses 2 time frames in the same chart, one is longer time frame (weekly in this chart), and a short time frame (daily in this chart). Using the weekly to define the direction and using the daily to get a better entering price. You buy when you see blue bar, large blue dot and blue X all show up and exit at the large red dot. We also have stops in place too.

For the chart above near the end of the chart, it could be a good sweet spot entry for the buy position, but blue bar and blue dot on the daily chart is in conflict with the red X based on weekly hidden resistance chart. AbleTrend uses blue to indicate buy and uses red to indicate sell. If the colors on the daily and weekly do not agree, no trade is recommended.

Here is the chart showing how the market developed later.

chsp-dw-20151028C

If you can deal with the choppy market well, profits will take care of itself during the trending days!


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