SATS2 Trading for More Profit Part 3

On 12/05/2003: we sell shares 188*$16.07 = $3,021.

In figure 2.14 we can see a first correction down, probably a wave (A).

 

Figure 2.14: Correction wave (A) completed, making correction wave (B)?

We are looking for a correction for longer term wave {3}. The correction we had up to now is normally too short and not big enough. Theoretically we would expect a correction to a level around a previous intermediate wave (4), or close to $11.

If we are right, price is now making correction wave (B) up. A valid wave (B) will stay below the previous top (5). With a buying point now we are close to this level. After the up correction we expect a continuation of the down move to complete correction wave (C) below the low of wave (A).

Price is making lower tops while the SVE_RSI_Swing indicator is making higher tops. This points also in the direction of a continuation of the downtrend once the up correction is completed.

We therefore decide not to open a new trade. However we will follow the SATS2 buying signal if price would move above the wave (5) top.

Since we have had already quite a big up move it is a good idea to have a look at the longer term trend (figure 2.15).

We therefore switch to a weekly chart up to this date.

Figure 2.15: Weekly chart for a better look at the long term.

Long term it looks like we have completed wave {3}. We expect wave {4} for a correction now.

Since this will be a down move, it is probably a good idea to wait for some indication that this correction is over and wave {4} completed, because it will be difficult to make money during a price correction phase.

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The final total profit obtained with AMD is $15,166 with a $1,000 starting capital or 1516%

Compare this with the profit of 143% using SATS2 without any intervention.

 

THIS is ALL you need learning, to make much more profit.

Highly profitable trading is not difficult!

 

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