I'll let my track record on my trades since July I've posted as ideas here replace any fancy charts. 89% win rate since July - and that's slightly under performing compared to normal. Trust me, it's short term oversold based on my algo.
I'll add any time it's oversold and there's two ways to play the exit, but in the interests of consistency, I'll keep using my original method - sell any lot when it becomes both overbought AND profitable. Plus I have to update less often that way.
Sell any lot on the first profitable close for that lot, regardless of whether it's overbought, is something that I've been tinkering with. That exit strategy produces lower overall profits per lot, but less capital outlay during downtrends (often 50-60% less) and quicker recycling of capital. It also is often proving to produce a greater gain per lot per day held annualized return than my original exit strategy - I've been using it privately for a while now to test it out.
The original strategy produces greater average gains per lot traded but at the expense of greater total capital outlay and more exposure during downtrends and longer average holding periods. They are similar enough in terms of returns per lot per day held that it's a preference thing, but anything that reduces unnecessary exposure risk is something I gravitate to.
It may not be sexy in raging bullish upswings, but it is tremendously beneficial when sentiment is negative, either in the individual stock I'm trading or in the markets in general. Anyone who follows me knows I like to minimize risk and maximize gain per lot per day held any time I can.
Not for nothing, VZ also pays a fat dividend, which boosts returns if you're stuck holding a while. It's not a major factor, since of the 150 or so trades I've posted here since July, the average holding period has been just over 16 trading days with a median length of 10 and the most common holding period has been 6 trading days. But a few have been long enough to benefit from dividend payments, so I always like to have that cushion just in case.
So the usual disclaimer, this is not investment advice, just a log of my trades and thought processes. DYOR and enjoy the show.