Step 1: Check that the long term trend becomes bullish
The long term trend becomes bullish when the 10 week moving average rises above the 40 week moving average.
Refer [Figure 3: Microsoft weekly chart]
Around March 11,2019,the 10 week moving average went above the 40 week moving average. So, long term trend is bullish. Now, we can use DreamTai to pinpoint the exact buy point.
Step 2: Use DreamTai to pinpoint the exact buy point
Once we know that the long term trend is rising up, we wait for DreamTai to become green. We can buy Microsoft around March 11 or later, because the price bars are green in color. Our purchase price will be around $112.
Refer [Figure 4: Microsoft daily chart]
Step 3: Use DreamTai to pinpoint the exact sell point
Around June 1,2019 the DreamTai price bars for Microsoft stock turned red at 125. This is the time to sell your shares, since the price bars have become red in color, which indicates bearishness.
On June 19, DreamTai again gave a buy signal. You can buy again at this point and hold till the price bars turn red again.
In mid-September and mid-October, there were fake signals due to choppy market, which would make you lose a little bit of money. You will encounter such choppy trades and small losses, but you do not have to worry as long as you make money on the bulk of the trend.
