Monday, August 8, 2011

DUG in exponential growth

DUG is growing exponentially these days, because of the equity market crash. 

I have a hypothesis that, on the 15-minute chart, when the price tests the EMA(26), or the RSI is below 50, it's a good entry point.

Buy signals on MACD are coming too late because they tend to happen after the open on a gap up.

Also, we seem to see a two-day cycle: one day of strong growth, without pauses, followed by one day of consolidation.  Today was growth, tomorrow we should see some consolidation, if this cycle holds.

The line of support/resistance that forms during the consolidation days should also be a good level to place stops under.


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