FAQs Frequently Asked Questions
Dr K Market Direction Model
I was late buying an ETF when the model switched signals. Now that the price of the ETF is back to where it was, can I buy now?
Yes, since the risk is back to where it was when the signal was initially given.
Note, this does not apply to individual stocks where the risk can be greater if the price/volume action when it pulls back is defective, so while it seems you are being offered a second chance to buy the stock at the same price, it may carry higher risk.
Meanwhile, defective price/volume action in the NASDAQ Composite that makes the ETF return to its original price could make the model switch signals, but until it does, your risk level is roughly the same. The market, in a sense, is giving you a second chance.
First published: | 14 Sep 2011 |
Last updated: | 19 Sep 2011 |