Learn when to sell winning stocks using ATR extensions above the 50-day SMA. The atr extension study 50ma reveals why 7–10 ATR moves often signal exhaustion and when to trim profits.
I like using extension as a state variable rather than relying on “this feels overbought.” I’d be cautious making 7 ATR a universal rule, though ... regime, liquidity and the stock’s own volatility structure still matter. The useful shift is that once a move enters statistically rare territory, the burden of proof changes from “why sell?” to “why am I still holding full size?”
Thanks, Million Dollar Book Club. I've put a lot of work into articles like this. If even one person improves their trading career because of this article, I'm happy, hehe.
I like using extension as a state variable rather than relying on “this feels overbought.” I’d be cautious making 7 ATR a universal rule, though ... regime, liquidity and the stock’s own volatility structure still matter. The useful shift is that once a move enters statistically rare territory, the burden of proof changes from “why sell?” to “why am I still holding full size?”
Excellent article!
I saw that “Edition 80” below the title , do you have a whole series about this?
Great attention to detail, Marco, hah.
Basically, this Wednesday newsletter is part of the swing trading education series I offer to all my subscribers.
Here are all 80 issues
https://www.ft.wtf/t/swing-trading-strategies-education
oh will have a look, great
Very nice article! I think many people would need this
Thanks, Million Dollar Book Club. I've put a lot of work into articles like this. If even one person improves their trading career because of this article, I'm happy, hehe.