I really hope you have been reading these articles. Last week we spotted an opportunity in MRNA that absolutely rocketed to outer space. It is hard to dismiss some luck but the strategy that got us in that trade works really well for a reason.
The signal we looked at can often spot these types of moves early. Not all are winners but when your directional call option goes from $5 to $70, it allows you to take a lot of small hits and stay in the game so you can be lucky.
Let’s take a look at how this played out.
MRNA popped up on a scan looking for bullish MACD crossovers.
That is step one. As you look through that list you are looking for that deep
dive in the MACD and then the fish hook bend back up to crossover. That tells
you it is setting up for a big move up. But the hard work that creates the “luck”
doesn’t stop there. You need to confirm that move with other indicators to
reduce the chance of it being an anomaly.
In this case the RSI was above 50. That tells us that not only
did it find a bottom but it also has started to gain upward momentum give the
move what it needs to go up.
I also pointed out in my article that these bullish
crossovers often happen in a broader downtrend. When the move back up breaks
above that trend, things are really starting to align. Here is the chart from this morning:
Now, you won’t get this big of a move every time you see
this set up, but it greatly increases the probability of a positive upcoming
move. The key is to set your emotion aside and exit the downside quickly. You may
get shaken out and exit a dip only to see it complete the expected move but keeping
that loss small will make sure you are in for the breakouts like this one.
I learned about the MACD Crossovers from following Ian
Cooper and his Trigger Point Trade Alerts is great at using these as a part of
a bigger strategy to grab wins. Be sure to
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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