Encouraging Post - SOXL
No BS, Lets go…
”Summary of this post”
1. $PHLX Semiconductor Index (.SOX.US)$ dropped by 3.35% hence $Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$ dropped by 10.45%.
2. This is just a correction, and you need to see the long-term projection of the semiconductor sector.
3. Detailed TA chart settings that I use and how this works so far.
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1. What happened?
The chips were all red and SOXL as x3 leveraged ETF got smashed - as $PHLX Semiconductor Index (.SOX.US)$ got smacked. Some companies with atrocious fundamentals (you guys know this) severely affected this ETF.
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2. Should you be concerned?
Absolutely No… We need to see the long-term projection of this index.
This has always been up-trend and the volume has increased so much that there is volatility which often so happens to be like 10-20% on leverage ones like SOXL.
Small fundamentals / institutional movements have nothing to do with the overall trend we are currently seeing. Society needs chips more than ever and that's what matters - I don’t see our Ordinary lives going back to Stone Ages.
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3. Indicator Settings I use.
I used the following indicators with customised settings.
• MA (13,25,34,210 with 21 cycle)
•Bollinger band (21, 2.33)
• Cloud only from Ichimoku
MACD and RSI are the default settings.
This overall setting is designed to capture the peak and dip as much as possible.
Frankly honest, MACD is quite slow, I used it to just confirm the “potential” reversal and nothing else.
I mostly use both 4h chart and 1 Day chart, and I found that 1 Day chart with this setting tells us about the absolute dip and climax top in 1-3 month intervals while 4H chart captures intra-day peak and dip.
Here are some successful examples. This is 1 day chart.
Yes, you do have to wait for about 1-2 months to maximise your return but winning rate has been quite great.
This strategy has been working for me because I don't want to be on the screen literally 24-7 stressing about intra-day movement, and this kind of swing trading works with less stress.
Now let me apply this chart to our sox index.
This is 1Day chart.
As you can see, the semiconductor index has been recovering since July. And yesterday, it has returned to 34MA line, which may bounce back soon if not it will go down to touch the bottom Bollinger band and come back again.
If you have a look at 4h on the other hand,
You can see that it was slightly over bought because it did touch on the upper Bolinger band. So if I want to do short term trading like what I do with SOXL call, you could have sold it 1-2 days ago. I didn't because I was greedy LOL.
Yes, there is so much uncertainty about where the market is going, given that the election is coming soon.
However, just going back to my point 2, if you know the overall trend is up, why are you scared?!?
I can tell you what's happening with the trading in general and how this is actually working.
1. Scamming Newcomers
law of conservation of mass still works in this as well. There are no change in overall money, for the trading to keep working as is, we need monetary inflow from outside of market, known as new comers. If everyone knows true values of the stock, the price won’t move, unless more newcomers come in to add more money into market.
2. Dream Business
Same as above, I said before, this is like the Music industry where you can be a superstar but at the same time only like 1-5% can be successful. You pay so much money to get better only be scammed by so-called teachers who got more money from teaching then actually working.
So I think that we need to change how this thing is going because, as I said before, the point 1 above will not work forever.
Also that’s another reasons why I never ever set the Stop Loss because they can see it, they know where is your market price stopss loss is, and you end up losing more.
That’s why I am happy to share everything I do here and working together, for at least people who listen to me.
As a community, we need to show newcomers that this is not necessarily scamming them but working together, so more investers come in the market and make the overall investment more valuable.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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BIR : Take a look at the weekly MACD of SOXL, um.
DollarBoy : long position absolutely safe... however hedge fund (option players )will be at risk due to unexpected down trend even ERs (like AMD) beat expectations
ひな☆彡 SOXL(Bull) OP BIR : MACD doesn't look too bad
ひな☆彡 SOXL(Bull) OP DollarBoy : True I ma one of them
BIR ひな☆彡 SOXL(Bull) OP : 祝你发财
ひな☆彡 SOXL(Bull) OP BIR : Thank u
103159190 : But I think it would be better to do banding with SOXL. Although it will rise higher, the oscillating market will have too much loss. It should be better to lock in profits. Just my personal opinion.
ひな☆彡 SOXL(Bull) OP 103159190 : I agree for options I should be able to take profit more frequently.