Europe - UK IHG big sell

[Tony Beckwith]

Hi to traders on the UK markets

Another example of using MTPredictor End-of-Day to find great trades on UK stocks...

IHG came up in the scan as an Advanced ABC recently...though invalid (the prior trend was not long enough) it was a perfect Decision Point sell set-up. Price up at the DP resistance level; red sell bar; STF bearish divergence; above +2x risk/reward at the opposite DP target...

Result: currently +5x profit (for example, turning a £200 initial risk into a £1000 profit).

Note: click the Advanced tab in the Scanner and tick ABC to find these set-ups

Thanks

Tony.

[Tony Beckwith]

IHG update:

Trailing Stop is 1. allowing profits to build up and 2. protecting profits in case of a reversal upwards...

Again, a simple Decision Point (DP) sell set-up into price resistance and a potential risk/reward above 2:1 at the 1st profit target (opposing DP)...

Thanks

Tony.

[radar]

IHG update:

Trailing Stop is 1. allowing profits to build up and 2. protecting profits in case of a reversal upwards...

Again, a simple Decision Point (DP) sell set-up into price resistance and a potential risk/reward above 2:1 at the 1st profit target (opposing DP)...

Thanks

Tony.

Tony,

In EOD version 5, how would you have known, at the time prices hit the DP target (in the graphic from your post on 11/28/07), that it was OK to trail the stop using the ATR stop vs exiting the trade sat the DP target?

thanks,
Ben

[Tony Beckwith]

Hi Ben

That depends on your own exit strategy - taking profits as soon as the DP is reached yielded an excellent +3.5x profit; taking profits when the trailing stop is hit nearly 5 weeks later yielded +4x profit.

Some traders we know move their protective stop to trail 1 tick above the highs as soon as the DP is hit (short trade) and then fix the stop 1 tick above the high of the 1st bar to close beyond the DP.

In EOD v6.0, the STF will have the same strength band as we introduced to RT, so you will be able to use that to judge whether to take immediate profits or run the trade using the trailing stop.

Thanks

Tony.

[radar]

Tony,
Thanks very much for the quick reply. Any idea when we might see the first bud appear on ver 6? After all, it is spring time.:)

Regards,
Ben

[Steve Griffiths]

Hi ben..........

Soon, but not yet, I will let everybody know when v6.0 is ready :)

Steve