The expected re-entry trigger on the Help Strategy finally showed up for work yesterday, states Ian Murphy of MurphyTrading.com.
The price bar on ProShares Ultra S&P500 2x Shares (SSO) closed positive, admittedly by just 1c, but all the other signals were present.
The chart is looking a bit crowded but the setup remains simple:
(a) We triggered on March 20 (green vertical line)
(b) We scaled out ⅓ after a 1ATR move to the upside (first black dashed line)
(c) The initial protective stop has not moved up (red dashed line)
(d) The trailing stop is lying just under that (solid red line) and will likely move up today
(e) We had another trigger yesterday, so we can scale back in (green vertical dashed line)
(f) If we missed the first trigger, we can start a new trade on this one
What’s nice about this trigger is the price closed almost exactly on the 21 EMA line so the targets will be on the ATR channels making it easy to visualize the required moves. Another attractive feature is the narrow range price bar which means the position size will be larger while the risk remains the same.
Learn more about Ian Murphy at MurphyTrading.com.
