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Let's look how we can make a quick 3 - 5%.

Trade setup 8a

KBE has been going sideways for a month or 2. Suddenly the stock gains almost 5%, a wake up call. Notice how stochastics is trending up and the -DI (red) and +DI (green) lines of the DMI / ADX indicator just scissored. The price came off a higher low than the previous low. MA's are squeezed (see brown Squeezed MA indicator line), signaling a change of trend. Volume looks good. TSV 3-day MA just bounced off the 13-day MA. All the indicators are giving the green light!

Trade setup 8b


It's now a couple of days later. We either bought late on the day it went up almost 5% or the next day at open. Say we bought around $41. The days after the buy, the price went up a bit, went down a bit, and went up again, all while stochastics stayed strong and the +DI (green) line of the DMI / ADX indicator trended up. Since we were looking for a 3 - 5% gain, we are stopped out right now! In any way, it's time to sell: stochastics topped out and TSV is sky high. Volume is up, but price is coming down.

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