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Community


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Online Share Trading

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Highs and Lows

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sponono
Super Contributor
I have kept a watchlist of all stocks that hit a 52 weeks high to see if these highs are just a flook or they are for real. My list indicates that these stocks have given a return ranging from a low of -2% (Tongat) and a high of 30% (DTC) with an average of 10% since the day of the 52 weeks high. My conclusion is that one could develop a lazy system that was based not on technical analysis but based on buying any liquid stock that hit a 52 weeks high. What do you guys think.
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7 REPLIES 7
DEP
Super Contributor
Sound reasonable, this will work in a bull market, like we having now.
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john_1
Super Contributor
Its the basis of TA.. buy that which is going up and sell that which is moving down... the question of break out systems has always been were to put the stops so that they are not obvious as it is very common for a stock to pull back to test the break out level...But also why favour only 52 week highs,why not short any 52 week lows... even more effective. Suggest you Google break out stratergies.
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sponono
Super Contributor
Based on this hypothesis one would buy Anglo today.
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saash
Super Contributor
Ah cool, someone else made themselves a system :-) Keep posting about it, and lets see if it stands the tests of time.
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Not applicable
u buying OML ?
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sponono
Super Contributor
Waiting for about 1275 (50 day SMA).
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john_1
Super Contributor
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