I've posted below two charts of UK stocks that a few weeks ago gave entry signals - one on the long side and one on the short. As you can see, both trades have done very well.
We don't blindly open positions based on what comes up on the scans. There is a 'visual' element to the stock selection process, that cannot be incorporated into the scan code.
The scans simply serve to present you with a list of potential trades worthy of further investigation.
On the basis that a picture is worth a thousand words, there is a lot of information contained within the chart that, to the experienced eye, can immediately tell you whether this is a signal that you want to take.
All the signals we take have the same characteristics, and it is pleasing that those who I have given training or mentoring to have been able to pick up on these points quickly, and are then able to identify other potential set ups that have those characteristics that we look for.
As I have mentioned on several previous posts, I can whizz through what looks like a large number of candidates in a very short period of time - a result of trading the same set ups, over and over again. Of course, not all pan out as intended, but all we are trying to do is put the odds in our favour, use a sensible level of risk on each trade in case we are wrong, and then sit back and see what occurs.
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