Although these Questions are few days old and alot of fortunes changed dramatically since last week, many of these levels remain actionable and require ongoing analysis.
There are 3 main buying points within MatrixCV framework on Daily chart :
- Breakout from base or formation (box), or breakout above support/resistance line. Daily candle has to close above the line, thus producing Buy Signal. Put 'stop' order to buy few cents above the high of Signal candle.
- Retest of breakout, or return to support/resistance line from above. This happens because "price has memory". Often, after breakout occurs and price rises strongly for days and /or weeks, eventually it will encounter overhead supply, selling will overwhelm buying and price will come down to about breakout price. Look for Down Day or two with high volume, followed by Up Day that will close higher. That's your Signal. Set 'stop' order to buy few cents above. Alternatively, you can just buy At The Market as the price falls into vicinity of your Line - really, the stock just recently broke out and rallied hard - it already proven itself. Also, if you happen to miss the breakout, this is your chance to buy close to that price.
- Retracement to rising 50 Day Moving Average. When stock breaks out of formation or above established support/resistance line, it is expected to develop a rising trend lasting months to years. At this stage it will not be making many boxes, but it will return to 50DMA every couple of months (or so), providing additional buying points along the way, as well as helping to trail a protective 'sell stop' order. 50dma is one of most widely used trade triggers, and often produces violent reversals.
Remember, that all this geared towards Bull market - price above 200 Day Moving Average and making a succession of Higher highs with Higher lows. When buying in ongoing Bear market (hoping to catch a bottom), bet in halfs or wait for better days.
