Having specific trade entry and exit rules are imperative to successful trading. I feel the exit of a trade is far more important than getting in. Many “guru’s” gloss over or ignore this topic. I have found that the combination of candlestick formations, Fibonacci extensions, regression channels and my proprietary application of the daily version of the weekly MACD will pinpoint your profitable exit, before giving back a lot of profits, that you would have by using traditional stop loss or trailing stops. The chart below shows an exit from a 60% profitable options trade on Abbott Labs (ABT). The next blog will discuss what I saw!
Please click on the chart to make it full screen.
