MY U-TURN TRADE SET-UP

By: Andric Shen

So far..set-up can be used in the following:
• Pre-breakout Play
• Bounce Play
Notes for Pre-breakout play
1. 50MA > 150MA (red above blue)
2. Can be traded in two ways:
a) Price breakdown from obvious support and is in consolidation
after the sell down or lower price rejection
b) Price made the “U-turn” back to the last known support
3. Ideally, set-up is found during the first level consolidation of the MA
crossover.
Thesis examples
Thesis counterexamples
- Less effective if stock is illiquid
- Already in Second level consolidation
after the Red Blue crossover.
- Less effective if stock is illiquid
- Made too much consolidation and
breakout play
- More risk if you bought at 2.a, set-up
didn’t materialize ( no U-turn
happened)
On-going study
(possible candidate)
2nd level already so let us observe if effective.
3rd level already3rdso let us observe if effective.
level already so let us observe if effective.
3rd level already so let us observe if effective.
Notes for bounce play
1. 50MA < 150MA (blue above red)
2. Can be traded in two ways:
a) Price breakdown from obvious support and is in consolidation
after the sell down or lower price rejection
b) Price made the “U-turn” back to the last known support
Open for suggestions if you found any
common denominator ex:
RSI(x) is always above 50 when the U-turn
happened
MACD crossover
ADX crossover
etc…