Ideal Buy Point

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Sarahj
Feb 07, 2023 03:16 PM 0 Answers
Member Since Feb 2023
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Marty, thanks for your prompt reply on my previous question. I have one more!

On CHWY, the buypoint on the watch list is $48. In a moment like right now, where the stock is at $46, is this a "Buy" right now and then set stop loss at 5%?

Lastly, What is the difference between a standard buy point and buy point?

CHWY is up 21% in 2023 and outperforming. The stock pulled back to its 21ema with light volume. I need to see some power as it bounces off a moving average. If it can trade through $45.50-$46.00 that would be a good early entry price.The standard buy point is where a stock price reaches a prior high after a consolidation period. An early entry buy point is where a buy point is presented below the standard buy point. ALGM is a good example where the "standard buy point" is at a prior high. But, the stock pulled back to its 21ema and bounce and offered an early entry buy point.  This is an art and not a science, and requires attention to details. That was not an easy entry.

I hope this answers your question.

 

Regards,

 

Marty

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