Multi-time frame analysis with sell rules (MDT)This is a basic look at how you could execute a trade based on the daily, weekly, and monthly time frame with exit rules that fit your risk criteria.
In trading, we're timing entries based on signals. The signals on MDT are seen on the monthly, weekly, and the daily time frame, which for me triggers the entry for a longer term position trade.
On the daily we have possible breakout of a 10 week+ consolidation - this could be considered the minor pattern over the major pattern (see below for major pattern). The measured move (height of the minor pattern) and fib extension (1.618) from the minor pattern is between 139.9 - 145. So that could be the first area to sell some on strength if trading shorter term.
Long term, the dominant trend is up and we want to cut out the noise to hold the position until the market signals otherwise.
Sell rules on the weekly time frame could look like this:
The modified heiken ashi indicator coded by Chris Moody is in the public library. It's not perfect, since it requires a wide stop, but it works well to stick with long term trends to cut out the noise in between. You could apply additional sell rules like I've detailed in the chart:
1) Does it hold structure (closes above the prior week's low?)
2) Does it stay above the 21 week moving average?
On the monthly time frame we could see the major pattern developing that signals the timing could be ripe:
Price broke out on the monthly (and quarterly) + retested the resistance. Price is now showing strength as we get closer to the end of July. This is a signal that dips should be bought as long the July lows hold.
Medtronic is a value play and what I'd consider a solid conservative stock to allocate a % of capital. Not FA...
GL
