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2020issue C037

Two-stage longs: golden-cross starter, then cup-breakout add

A golden-cross is used as an early long-entry signal. The starter long is placed on the session after that signal is observed, and a fixed-dollar-stop is set immediately two dollars below the fill. A later bullish-cup-breakout can open a new trade or add to an existing winning long, with adds preferred when a tall-breakout-candle forms on the right side of the cup.

  • A golden-cross, a 50-period simple moving average crossing above a 200-period simple moving average, is used as an early long-entry signal. The starter long is placed on the session after that signal is observed.
  • Once the starter order fills, a fixed-dollar-stop is placed immediately two dollars below the entry price.
  • Additional shares are added only after a later bullish-cup-breakout, rather than taking full size on the first moving-average cross.
  • Cup-breakout adds are described as preferable when a tall-breakout-candle forms on the right side of the cup.
Entries in this reading3 entries
Current trackScale-in position adding34 readingsMoving-average crossover126 readingsStop-loss order297 readings

A two-stage long procedure

The archive describes a long procedure that pairs a moving-average crossover with a later cup breakout. Two technical conditions, not one isolated indicator, govern when size is started and when size is increased.

A golden-cross is defined as a 50-period simple moving average crossing above a 200-period simple moving average. It is used as an early long-entry signal. Additional shares are added only after the cup-breakout signal appears, rather than taking full size on the first moving-average cross.

The golden-cross starter

The starter long is described as being placed on the session after the golden-cross signal is observed. That first order starts the long. It is not the point at which full size is taken.

A stop set at fill

Once the starter order fills, a stop-loss is placed immediately two dollars below the entry price. That fixed-dollar-stop is a protective exit placed a set two dollars below the filled starter-entry price.

Scale-in only on a bullish-cup-breakout

A later bullish-cup-breakout is a cup-shaped consolidation that later breaks higher. It is treated as a second long signal that can open a new trade or add to an existing winning long.

Scale-in means adding to an open long only after that later pattern appears, instead of taking the full size on the first signal. Cup-breakout adds are described as preferable when a tall-breakout-candle forms on the right side of the cup. A tall-breakout-candle is a large bullish bar on that right side, treated as the preferred add trigger.

Two conditions govern size

The procedure pairs a moving-average crossover with a later cup breakout so two technical conditions, not one isolated indicator, govern when size is started and when size is increased. The archive presents that pairing as a historical workflow.

Tesla daily closes with 50- and 200-day averages

Price first lifts after the 50-day average crosses the 200-day average near 255 in early November, then rests in a cup between about 330 and 360 before a tall mid-December candle clears that rim. The add belongs on that breakout, not on the first cross. Closes and both averages were read from the source daily candle chart.
Price first lifts after the 50-day average crosses the 200-day average near 255 in early November, then rests in a cup between about 330 and 360 before a tall mid-December candle clears that rim. The add belongs on that breakout, not on the first cross. Closes and both averages were read from the source daily candle chart.TSLA · daily · 2019-10-16T00:00:00.000Z to 2020-01-14T00:00:00.000Z

Approximate levels read from the raster; the source printed no numeric table. Tesla prices are pre-split. The 50- and 200-session simple moving averages are the pair used to mark the golden cross.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
17 of 18 in the Scale-in position adding track
20207-7 pp.Next on Scale-in position addingClose-gated scale-in for swing breakoutsA buy-zone close above the prior day's high is the only settlement that starts a new long or authorizes an add.
All readings on this track · 18 readings
  1. 1989Measured range, scale-in ladders, and spread replay as a cash-reserve design
  2. 1990When result pressure rewrites checklist and scale-in rules
  3. 1992Split-sample floors, ceilings, and standing aside
  4. 2006A swing operator's scale-in, structure, and cash-floor procedure
  5. 2011Scale in currency risk with tenth-size futures
  6. 2012Nested cycle scale-in with rewritten stops
  7. 2013Volume-confirmed swing breaks with scale-in and trailing stops
  8. 2014When volume thrusts still require a session procedure
  9. 2015Fusion entry and scale-in after broken levels
  10. 2015Volatility and volume gates for breakout entries
  11. 2015Scale-in and prior-range breakout management
  12. 2017A pair as a two-clock book
  13. 2017Pair-spread risk as a unit-by-unit capital sequence
  14. 2018Moving-average breakout with delayed scale-in
  15. 2018Steepening price-channel breakout with delayed confirmation and planned adds
  16. 2018A scale-in needs a gate or it is leverage
  17. 2020Two-stage longs: golden-cross starter, then cup-breakout add
  18. 2020Close-gated scale-in for swing breakouts
By fieldEntry and exit rules327 readingsBy year2020165 readings
All 34 readings tagged Scale-in position adding
Also on Scale-in position adding5 readings
2012Nested cycle scale-in with rewritten stops2017Pair-spread risk as a unit-by-unit capital sequence1989Measured range, scale-in ladders, and spread replay as a cash-reserve design1989One add option sizing with a scale-out and a trail1989Shorter series need fewer recovery hits and raise scale-in cash