I wanted to show you how the new Auto Trendline Signal in the Stock Pivot Trade Analyzer works with a real-life example.
I had ARRS in my watchlist and ran the Trendline Signal analysis a couple days ago and plotted the trendline as shown on the chart. If you’ve watched the video you know that it’s simply a matter of snapping on the starting date and price and ending date and price levels and then drawing a trendline through the intersection of the two points.
The great thing about this indicator is that it’s very visual – once you plot the trendline you can follow along and see exactly what’s going on as the trade sets up. The trendline you plot stays on the chart and you simply sit back and wait for the stock to break over that trendline.
The key of course is staying out of the stock until / unless it breaks over the trendline. Then the high of that day becomes the “trade price barrier” and the entry is the next time it breaks over that day’s high. I marked that level in green on the chart above.
It takes a little practice but I can plot the trendline in about 15 seconds and then it stays there on the stocks I’m interested in and I can follow along or even set an alert. I like to use the Freestockcharts.com for this but it doesn’t matter what charting platform you prefer. I could just as easily plot it on my Think or Swim platform. It’s a very visual indicator and we know how important trendline breaks are to successful swing trading.
With this trading system you can literally ditch the rest of your chart indicators.
As you see in the example it happened to break over yesterday’s high this morning but sometimes it can take a few days to actually move over the “signal day” high. It’s still a valid signal in that case.
There will be occasions where the price doesn’t break that signal day high and the stock trades back down, in which case you don’t get in. Just run the software again each evening after the close and see if the signal remains. It might change a bit or it might not give a signal until the stock sets up again.
The beauty of the Auto Trendline Signal in the Pivot Trader software is that it’s a completely mechanical trading system and it will keep you from buying a stock at the wrong time. We’ll get into a lot more examples and details in the future so be sure to check back.