Dear friend and fellow trader,
This is the story of a trade (so far) on a stock, British Gas (BG.)
This trade is a longer term trade, entered on the basis of my CAsh To Order (CATO*) trade alert software indicating to go Long on the 30 Minute Chart.
What made this more of a candidate was looking back on the weekly chart; it was as long ago as Aug 2010 when the price last reached and found support at these levels.
Here are the charts.
British Gas – weekly chart.
Double bottom formed at prior support level.
British Gas – 30 minute chart.
1. First trade entry on 21 Dec with three trade units at 1010p on rejection of 1000p price level and CATO BullBearButterfly indicator strengthening into BearButterfly with two long trade alerts. Tight low risk stops possible at this level.
2. Second trade entry on 3rd Jan with two more trade units at 1018p on CATO BullBearButterfly indicator now BullButterfly after going Bull and pulling back; followed by a Long trade alert with profits already running on first entry tranche of three trade units.
3. First trade unit banked on 16 Jan at 1085.41p.
Commentary: The trade was taken on a very early entry, with stops below the recent lows. Overall, 5 trade units were scaled in, in two tranches. The first of these two tranches was entered just before Xmas, and the second in the first week of January.
One of these units from tranche 2 hit T1 on the 16th Jan, and closed banking those profits. I have 4 more targets set at prior resistance levels for each of the remaining trade units. They have limit orders set to automatically bank profits if they are hit. If they aren’t, the profits on the first trade units are in the bank, and the existing trades are being protected by trailing stop alerts.
Wishing you successful trading.
Warm regards, and good wealth, health and happiness to you
John
PS. If you are interested in the book I am writing, or would like access to the real time graphical CATO Trade Alerts indicator – please register your interest here at: 30minutetrading.com
*CATO – CAsh To Order – please note, nothing in trading can be guaranteed, this is a design intention, which focusses the mind.
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