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Bank Of America Trade Analysis by priceSeries
NYSE:BAC

Bank Of America Trade Analysis
NYSE:BAC

Full Trade Animation

The example has been compiled using a trader profile listed below. The trading approach illustrated here may not be perfect.
Once could increase their profitability by taking higher trading risk.

Trader Profile

Dan is a low risk profile trader. He prefers to trade blue chip companies. He understands technical trading but is not an expert technical trader.

Dan uses priceSeris platform to identify new trades in blue chip companies. Once he identifies a trade he utilizes his knowledge of technical analysis and the tools provided by the priceSeries application to evaluate the technical standing of a potential trade.


Day by Day Analysis

Day 1

Analysis

  • System identifies the trade, shown by BLUE UP Arrow.
  • Green dot above the candle indicates that the up thrust is higher than previous trading day.
  • The up move is a gap up and the Current Traget is at $17.99
Trading Risk: Very High

Trader's Actions

  • Technical Traders may decide to enter the trade after checking the technical indicators
  • Non Technical Traders must wait for a confirmation of uptick. The sudden move could also be temporary based on market news.

Day 2

Analysis

  • Today the Up Thrust is GREEN.
  • The algorithm qualifies the trade as a TOP PICK.
  • Today's move also breakout of previous target at $17.99
  • New Current Target is $25.17. We expect the stock to now move to around $25.17
Trading Risk: Moderate

Trader's Actions

  • All Traders can enter the trade with relatively low risk because the trade is a TOP PICK and has Broken Out of it's old target.
  • Traders can place orders with their broker to but the stock next day. The BUY Price should be above $18.92.

Day 3

Analysis

  • Today the Up Thrust is ORANGE.
  • The stock closes at $19.02. The BUY orders at $18.92 are filled.
Trading Risk: Moderate

Trader's Actions

  • Trader buys 1000 shares at $18.92
  • Immediately after purchasing the stock the trader puts a Stop Loss order for system suggested Stop vale of $18.17 or any value trader feels appropriate.
  • Closing price is $19.02
  • Net Gain by the trader (19.02-18.92)*1000 = $100 or or 0.05% gain

Day 4

Analysis

  • Today the Up Thrust is GREEN.
  • Another opportunity for new buyers to enter the trade.
Trading Risk: Moderate

Trader's Actions

  • Closing price is $20.08
  • Trader sets the new Stop value to $18.35
  • Net Gain by the trader (20.08-18.92)*1000 = $1160 or 6.1% gain

Day 5

Analysis

  • Today the Up Thrust is ORANGE.
Trading Risk: Moderate

Trader's Actions

  • Closing price is $20.16
  • Trader sets the new Stop value to $18.45
  • Net Gain by the trader (20.16-18.92)*1000 = $1240 or 6.5% gain

All days in Trade

The Trader continues to update the Stop price daily until the SELL is issued by the system or the Stop Loss order is executed.

The Trader can get out of the trade anytime they are uncomfortable.

Day 27

Analysis

  • Today the Up Thrust is ORANGE.
  • We are probably nearing the end of the trade. New Entries are risky.
Trading Risk: High

Trader's Actions

  • Closing price is $22.66
  • Trader sets the new Stop value to $22.22
  • Net Gain by the trader (22.66-18.92)*1000 = $3740 or 19.76% gain

Day 28

Analysis

  • Today the Up Thrust is RED.
  • The system sees a negative price action and issues a SELL signal.
Trading Risk: High

Trader's Actions

  • The low today was $22.33
  • Trader's Stop of $22.22 has not executed
  • The Trader sets a marker sell order. The stock is executed at next day open at $22.63
  • Net Gain by the trader (22.63-18.92)*1000 = $3710 or 19.60% gain