Hubert Senters here.
Let’s take a look at CarMax. KMX is the symbol not the signal. It has a sell signal on it as of today. So you had a nice sell signal here broke down, bounced up above the turning and the standard line almost touched the cloud.
And now it’s re-selling below the turning line. So in other words what you’re looking for is a nice little kiss. It’s not a perfect set-up but it’s good enough for us to pull off. What you want to see is a break down below the cloud like this. You know want to sell off for a period of time.
And then work its way back to the cloud in this area right here. And then you want to work its way back down and close below the turning and or the standard line.
In this case, it is below both across around on top of each other. So how would this trade workout? So you would sell it here as it broke down through $60.30.
I’m going to pretend that you got the worst possible feel and you sold it at $58.77. Your stop-loss will either be $60.30 or the top of this most recent candle which is going to be $62.81.
And then your first target, you want to kind of peel off fairly quickly $57.25. And then after that about $52.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
