I found BTSG by scanning for stocks reaching an ATH today. BTSG had a recent high volume GLB and then went sideways for about 15 days. On Tuesday it broke out again to new high ground, again with large volume. Look at the huge volume up days it has had recently. The monthly chart shows BTSG came public in January, 2024 and has had two GLBs. After looking at many stocks having GLBs, I have realized that if I buy a stock close to its GLB, I should hold it until the stock closes back below the green line. That way I will be less likely to be shaken out by daily or weakly volatility. Just buy near the green line and hold it for a long time. That is what I am going to try to do. In the past I have often sold such stocks because of a daily or weekly signal, only to see it go on to climb for months. BTSG has great IBD stats: Comp=95 and estimated 2025 earnings are +321%. I bought it a little further from the green line but will sell it if it closes below the green line, @25.57. Note my first buy at the earlier Note (N) only to be shaken out dyas later because of a subsequent down day. BTSG never closed below its green line and I should not have sold. Profit from my mistakes……
If you’re buying on the break and then using a close below GLB as a stop, then in this particular case, BTSG offers a very nice risk profile in context of an O’Neil type stop – call it no more than 8%. It makes me think about position sizing and what kind of size one would have to take to get shaken out of the trade before it closes below the GLB. Perhaps my view on position sizing is quite timid in comparison to what it should be to truly build an account from GLB, I find it can be difficult to scale in when the issue is a fast mover, but the sideways action seen here in BTSG and drying volume profile is consistent with a common setup for an entry technique for several traders Moglen has interview. Such a combination of GLB + immediate sideways action with a drying volume profile, would offer ample time and opportunity to scale in. That said, without the benefit of hindsight this is a process easier said than done from an emotional standpoint, however could be beneficial to avoid whipsaws while the tradeoff may by the experience of regret from missing a potential fast mover.
I bought BTSG on 9/23 (27.94), got shaken out, and bought back on 9/26 (26.98). But I am confused.. you write “if I buy a stock close to its GLB, I should hold it until the stock closes back below the green line. That way I will be less likely to be shaken out by daily or weakly volatility.” This sounds like you suggest to hold it until it closes back below the green line on a monthly chart and ignore any daily or weekly volatility. But it would make no sense to wait for the close of a monthly candle if for whatever reason massive tankage below the green line were to happen on a daily or weekly timeframe. Can you please clarify?
I’m a bit confused. If you hold a GLB stock until it closes below its green line, then you, at best, break even. Isn’t there a better way to take profits?