Fitbit is holding its own against Apple. This is the more affordable device and controls the market share for this space...FIT was upgraded and thus has a nice gap today, should run higher from here with overhead supply at the old resistance levels look for those to be targets to take profit and lock in gains....move stop to trail...stop starting in gap, give wiggle room...but remember we are still in a correction could retest old lows be ready to exit ...you can always get back in
Actually, he would have been stopped out right before the big move to Target 1. Perhaps a better stop would have been below the double bottom (because it ended up being a triple bottom).
A-shot
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31.1 is where i would have had at least a hit of stop loss, so i technically could have played the exact double bottom - to the target 1 for a 20% win. what more could you ask for?
Vince
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Stops can be put where makes sense with a 1-5% risk in portfolio, on gap and go I usually put in the gap a stop, does not always work, but hope it benefited you :)
A-shot
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In this case, the gap happened after a turn from a short term bottom. I would have actually put the stop 1% down off that bottom because when i look at it from a shorter than a daily view (or imagine) i see a wick already so that was a change of direction there, if the gap gets covered you would still be in play (and i leave off some 1-3% for a fake-out). Technically in this play i would be in game and take profits at target one.
Vince, what would/could be the issue with such a strategy of stop loss? I would really like to get your advice as i value your experience.
Vince
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On a gap and go strategy my stop is typically in gap, with markets bipolar I am tighter, but that costs sometimes...under the other areas of support are great also thanks for your comment