‘Mechanical’ set-ups are particularly well suited to buy stocks when they swing violently. That’s because our entry points are calculated to get us aboard just as the last of the psychotic bulls who trade such stocks have been shaken out. What better opportunity could we have than the shares of small biopharmaceutical companies? They are notoriously volatile, frequently doubling or tripling in the space of a day or two. Are ‘mechanical’ set-ups up to the challenge? The answer is ‘yes’, and this lesson will help you to understand why.
