Weekend Investor
I have written before about the 2 hour investor set up
Related: The 2 hour Investor
This setup allows me to scan opportunities in relatively short period of time over a weekend and it is something that works with time I can spend on trade bets.
It is a very simple set up, I scan for
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Companies that have been consolidating in price range of +/- 12% for last 6 weeks, or longer
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Price is above 20 week EMA
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Breakout from range in the week I am running scan, the breakout should be minimum 2% max 20%
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Consolidation should be lateral not vertical
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MACD should be over signal line
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Ensure company is fundamentally strong positive ROCE, ROE and increasing sales and profits are some very simple checks done before taking trade
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Initial Stop loss of 10%
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Place a stop Exit once MACD goes below signal line
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Increase stop loss level to book profits and not lose on profits if made
Let me give you an example of something we analysed
The scan threw up ALKEM Labs undergoing a long-consolidation for 9 months, there was breakout week with good volumes with price staying above 20 week EMA (black line). The breakout was due to strong results in that week. The trade set up continues to work rising with positive MACD
Up until 3rd week of October when MACD line goes below signal line and a revised stop loss below the wick is placed as stock loses momentum
Hope it helps in building your own set up
I am constantly updating this set up so please dont treat as a recommendation to use it, I may or may not provide future updates. Also I only trade with less than 5% of my capital to keep learning . 95% of my capital continues to be deployed in long positions and I remain invested unless I find something more attractive or my thesis doesn’t work out.
You can get an idea of my style reading this analysis
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