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2019issue C086-7

Decade-level breakouts as one closed swing procedure

This archive case study binds a decade-level long into one rule-based-entry. The written workflow delays the breakout, parks invalidation under the round number, and exits the full position at the next nine-target.

  • Longs are taken only on charts already in an uptrend and trading at or near a decade-level, which the procedure treats as a ten-point-channel boundary.
  • The buy stop waits for the confirmation-offset above that hinge. After a fill, the invalidation-offset sits a fixed increment under the same decade-level.
  • The nine-target is a full-position sell at the print ending in 9 just under the next decade-level, not a trailing stop.
  • Editorial reading: a fill only 0.50 above the decade-level is an abstention rule inside the same rule-based-entry, not a looser breakout.
Entries in this reading3 entries
Current trackSwing trading44 readingsBreakout confirmation172 readingsRule-based entry174 readings

What the scan is waiting for

The written procedure looks for long setups on charts already in an uptrend and trading at or near a decade-level. That hinge is a share price that is an exact multiple of 10.

Price is described as often consolidating or pulling back at multiples of 10 per share, which is why those levels are treated as ten-point-channel boundaries.

The hold is specified as a swing-trading window of up to two to three months. The setup is kept as one unscaled position so initial stops stay simple.

PPC decade swing from the $20 buy zone to the $29 nine

A trader should see Pilgrim's Pride hold just above the $20 decade, accept the delayed $21.50 breakout, and press into the high-20s where nines start to look expensive. Approximate session prices were read off the labeled daily candles; the $21.50 delay, $20 decade, and $29 nine-target are the levels the article states for this worked example.
A trader should see Pilgrim's Pride hold just above the $20 decade, accept the delayed $21.50 breakout, and press into the high-20s where nines start to look expensive. Approximate session prices were read off the labeled daily candles; the $21.50 delay, $20 decade, and $29 nine-target are the levels the article states for this worked example.PPC (Pilgrim's Pride Corp.) · 180-day daily · 2018-12-12T00:00:00.000Z to 2019-06-11T00:00:00.000Z

Closes were sampled on the labeled dates and rounded to the nearest $0.10; they are visual readings from the printed daily candles, not exchange prints. The $1.50-above-decade delay is the article's fixed offset for this $20 setup.

How the breakout is delayed

The entry rule is a buy stop at the confirmation-offset, a fixed 1.50 increment above the decade-level. When that decade-level is 20, the buy stop is shown at 21.50.

In this procedure a breakout is price clearing the decade hinge only after the confirmation-offset prints, not the first print through the round number.

After a fill, the protective stop is the invalidation-offset, a fixed 0.50 increment below the same decade-level. When the decade-level is 20, that stop is shown at 19.50.

The nine-target and the worked order

Planned exits are the nine-target, the print ending in 9 just under the next decade-level. The workflow illustrates 19 after an 11-area entry, or 29 after a 21-area entry.

Trade management uses a conditional sell at that nine-target instead of a trailing stop, so the full position exits if the print is reached. Selling at nines is framed as a behavioral reaction to expensive-looking prints rather than as a separate technical indicator.

The written procedure specifies an initial size of 100 shares. The worked order pair is a 100-share buy with a 21.50 stop and a 22 limit, paired with a 100-share sell at 29.

When a nearby fill is not the entry

A fill only 0.50 above the decade-level, shown as 20.50 versus waiting for 21.50, is described as more likely to be shaken out.

Editorial note: TradersWeek treats that warning as an abstention rule inside the same rule-based-entry, not as a reason to move the buy stop closer to the decade-level.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
29 of 35 in the Swing trading track
201918-19 pp.Next on Swing tradingInverse-pair swing trading with a shared buy-stopThe procedure is swing trading that looks for strong-trending inverse pairs and tries to avoid false breakouts.
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