http://dreamtai.blogspot.com/2007/01/what-are-stock-kisses.html
Here is an example of application of Stock Kisses in Action for a stock GLDN.
Assume that it is September 2006 and you are looking at a stock with ticker symbol GLDN. It appears bullish because the 20 days moving average is above the 50 days moving average and the stock has just kissed the 20 days moving average. Will the 20 days moving average accept the kiss ? Who knows ?
But for us, it is the safest time to buy and we would place the stop loss sell order at the Blue line which is slightly below the 20 days moving average.
[Usually about 1.5 to 2 times the daily average range of past 5 days].
Of course, we ensure that our maximum risk is less than 2 percent of our capital, when we place a buy order.
Let us wait and see what happens.
Guess what ? The stock rose up again after kissing the stock average. This is really a good sign and we are profitable.
Now it is November 5 and the stock is again beginning to kiss the 20 day moving average. What would you do ? Previously, the 20 Days moving average had accepted the kiss. It appears that this time also, it may accept the stock kiss. Let us place a buy position to add to our stock position and put stop loss at the blue line.
The stock moved up again after kissing the moving average giving us an hefty profit again.
Now, it is around November 30. The stock has kissed the 20 days average line again.
We add to our positions and place a stop loss order at the blue line.
The stock rewarded us again by zooming up.. Hey!! Kissing is fun AND profitable.
Now, it is Jan 2007. You have just celebrated the New Year. Now, you have to go back again to work..business as usual..You notice that the stock has kissed the 20 day average again. OK, let us buy again to add to our profitable position.
Guess what ? The stock moved up again and zoomed above the $50 line leaving us with lots of joy and profits..
To conclude,
STOCK KISSING IS GOOD!!! Spread the LOVE !!!
