This post is just bringing to your attention the fact that you can sometimes find a share which is almost predictable and will discuss how we can use the trend to make a profit over and over again! Trading with Trends…
The example on the right is Smiths Group
In their own words
Smiths is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy and communications markets worldwide. Our products and services make the world safer, healthier and more productive. Smiths Group employs around 23,000 people in over 50 countries. For more information visit www.smiths.com
I was about to take this company of my watch list until I had a quick look at their chart and seen the way the price has been swinging about 100 points up the down up then down etc! This is a perfect example of a share which can be traded within its established range so I have went long at around the 1390 point and hope to ride it up to the 1500 mark. Obviously how it behaved in the past is no guarantee for the future but I will watch the price closely and set a sensible stop loss to get out if it starts to go wrong.
Their chart is a perfect example for Trading with Trends!
Another fine example although not just as straight forward would be good old Dominoes Pizza
As it Grows as a company the market cant decide what it is worth so we get the big swings up with delusion at one point to 700p but then in general has a swing of around 80 points which I have been in and out of a bit. I didn’t get out at the peak of £7 (maybe I fell asleep… maybe I too was deluded!)
So this is one to watch can we trade in and out? I think we can
Also I love pizza!
Order here —-> www.dominos.co.uk