Pyramiding Buying Strategy Expert-Stock Trend Utilization

Example

Using a combination of moving averages and MACD to confirm an uptrend before making an initial investment.

Scenario

A user observes that a stock's 50-day moving average has crossed above its 200-day moving average while the MACD line has crossed above the signal line, indicating a strong uptrend and a potential initial buy signal.

Example

Making additional purchases when the stock price rises by a predetermined percentage from the initial purchase price.

Scenario

After an initial purchase, the stock price increases by 5%. The strategy then dictates an additional purchase to capitalize on the continuing trend, using a portion of the unrealized profits to fund this purchase while managing overall exposure.

Example

Setting stop-loss levels for each buying phase to manage risk and protect capital.

Scenario

For the initial purchase, a stop-loss is set at 5% below the purchase price. For subsequent purchases, stop-loss levels are adjusted upwards to protect the profits while still allowing room for normal price fluctuations.

Example

Taking profits and closing positions when a predetermined return is achieved or when trend reversal indicators emerge.

Scenario

A user sets a target return of 15% for the entire position. Once this target is reached, or if trend reversal indicators such as a MACD bearish divergence appear, the strategy advises selling the position to realize profits.