Yesterday’s rally took my QID long out early for a .25 loss. A stock I flagged last week as a new one to watch again was MSTR – MicroStrategy, Inc.
This stock traded into one of my favorite setups. On Thursday, MSTR shot off of the 50 day moving average with a high of 79.71. Friday, it traded in a very tight range. The high was 79.99, with hardly any pullback.
The setup was in place. A buy stop is entered at 80. The narrow range bar’s low acts as a stop loss point.
I’ll place buy stops frequently on setups I like. I usually set an alarm just before the trigger point, so I’m informed of the move. Buy stops save precious time when a stock is moving fast. I was taking another trade at the same time, and would have missed the entry in MSTR without the buy stop in place.
