Study Guide for Come Into My Trading Room - Forex Factory
Study Guide for Come Into My Trading Room - Forex Factory
Study Guide for Come Into My Trading Room - Forex Factory
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176 CASE STUDIES<br />
Trade 4: Imclone Systems IMCL—Entry Answer<br />
IMCL: A Steady Trend Against a Pervasive Enemy<br />
Chart A4-a<br />
A key principle of the Triple Screen trading system is to make strategic<br />
decisions on long-term charts, and then turn to short-term charts <strong>for</strong> tactical<br />
decisions about entries and exits. The weekly chart of IMCL shows<br />
a series of slow and steady swings, each lasting several months. If we<br />
can get in gear with an upswing, we should trade from the long side as<br />
long as it continues. If we get in gear with a downswing, we can continue<br />
shorting <strong>for</strong> as long as that downmove stays in <strong>for</strong>ce.<br />
At the right edge of the weekly chart, in area A, both weekly EMAs<br />
have turned up, giving buy signals. At the same time, MACD-Histogram<br />
has ticked up, rein<strong>for</strong>cing the bullish message (this is an Impulse System<br />
buy—both the EMA and MACD-Histogram point higher).<br />
IMCL has been stuck in a flat trading range <strong>for</strong> the past two months.<br />
The bottoms of MACD-Histogram have become shallow, showing that<br />
bears are becoming weaker. Bulls, at the same time, have maintained<br />
their strength—the rallies of MACD-Histogram above its centerline have<br />
been rising to the same level during those two months. As prices push<br />
higher, toward overhead resistance near the right edge, Force Index<br />
A