I am
posting another AFL, which can be useful to plan your trades. This AFL is
particularly useful for traders who do swing trading. In swing trading the
trader prefers to wait for a trading signal based on confirmed change of trend.
This signal can take short to long trading days. In this trading system a
trader can safely find an entry point, but waiting for an exit signal can take
away some of the gains generated.
Most
analyst advice, whenever a trade is entered, the exit point too must be decided
based on some criteria. These criteria can be anything from percentage of
return to specific price target.
What
this AFL attempts to do is it gives an entry point along with a target price to
wait for an exit. It also cautions the trader, with a stop loss level. The back
ground color can be adjusted to suit the viewing comfort. The chart window also
displays a trending ribbon, which serves as a trend indicator. The time frame
can be adjusted for daily, weekly or monthly. In every time frame chosen, the
entry and the exit points can vary. My opinion is to look for a weekly mode
setting, which can give a meaningful value. A word of caution here – deploy this
AFL along with other indicators for confirmation of trends. I suggest, the
Stochastic Momentum Index for confirmation. I have tweaked the codes slightly
to avoid booking profits too early.
Happy
trading and best wishes.
