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Online Share Trading

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Historical high

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sponono
Super Contributor
This week I did something I have always advocated but never had the guts to do: Buy a stock at a historical high and it seems to be working. All I need to do now is to add more on minor corrections.
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7 REPLIES 7
Not applicable
And the stock is? Would love to analys and see what your thoughts were.
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SimonPB
Valued Contributor
ya, momentum investing .. we shouldn't be so scared of highs ..
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divz
Super Contributor
I think also just get confirmation from other indicators such as MACD i find that if there is no confirmation on new highs/lows the price seems to change direction quite quickly.
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Stij
Contributor
Ja that's what I thought when I bought installments on Sasol @ R480. I suppose the problem there is that I thought I could ride out the loss like with a share... the installments exprired worthless several months later :(
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SimonPB
Valued Contributor
I disagree .. statiscally a new high leads to anbother new high an so on .. until yes one day it doesn't .. there was an FT article about just buying the winners, and it out preformed ..
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Big_Bucks
Super Contributor
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divz
Super Contributor
Simon, what i am talking about is a divergence between the new high and MACD where the MACD ticks down while the price has hit a new high normally a strong short indicator of change of direction. I picked this up in an Elder book (not sure which one) have used it quite successfully ever since from my notes he mentioned that you close your eyes and trade it don't seven second guess - who am i to disagree with Mr Elder.
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