By Derald Muniz
For those traders that prefer a more mechanical approach to trading, I bring you a Simple Approach by using Volume Bar counts. To illustrate with an example, I bring you the 60 minute chart of $UTX (United Technologies):
This trade setup has the following parameters to follow:
- After 4 RED Volume bars in a row you initiate a new long position. Use a 1% trailing stop.
- Over the time frame of this chart there have been 7 triggers.
- Trigger #2 & #6 are only triggers to hit a stop within 2 trading days.
Disclosure: we own $UTX for a client (part of the Fab 5 that Derald manages).