A long-term investment strategy that triggers a buy signal when today's low is lower than yesterday's, with an automatic selling mechanism set at 100% profit above average buying price.
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The indicator operates by comparing the current day's low price with the previous day's low price. When the current day's low is lower than the previous day's low, it generates a buy signal for the specific stock. Upon executing the buy order, the system calculates and tracks the average purchase price.
As the stock price rises, the system maintains a target selling price set at 100% above the average buying price. Once the stock reaches this predetermined target, an automatic sell signal is triggered, liquidating the entire position and resetting all tracking variables to their initial state.
Why it may be useful
This strategy provides a systematic approach to long-term investing by removing emotional decision-making from the trading process. By establishing clear entry and exit rules based on price comparisons, investors can implement a disciplined investment method that minimizes subjective interpretation.
The automatic profit-taking mechanism ensures that gains are locked in at a predetermined level, protecting investors from potential market reversals and providing a consistent method for capturing returns. This approach helps investors maintain a structured and rational investment strategy.
When to explore it
This signal is most effective in relatively stable markets with consistent trending characteristics. It works best for investors seeking a straightforward, rules-based approach to stock selection and portfolio management. The strategy is particularly suitable for those who prefer a hands-off, systematic investment method.
Investors should consider using this signal when they want to reduce emotional trading decisions and implement a disciplined, long-term investment strategy. It is most appropriate for patient investors who are comfortable with a methodical approach to capturing market gains and managing investment risk.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
