Here’s a review of how I have traded PALM using Ichimoku.
I will provide 2 set of entry and exit prices. You should be able to identify a 3rd set of entry and exit (which will not result in much profit).
1. Entry 1 (Jan 8, 2009)
- PALM gap up on news of Elevation Partners investing in it.
- The chart shows the price and Tenkan sen, Kijun sen going above the kumo
- Let’s assume we got in at the high of the day at 6.58 (Day 1)
- Subsequent days did not go below the low of Day 1, so we are not stop out.
2. Exit 1 (Feb 27, 2009)
- Tenkan sen – Kijun sen has a bearish cross
- We assume we get out at the low of the day at 7.124
- Profit = (7.124 – 6.58) = 0.544 per share
3. Entry 2 (March 23, 2009)
- Tenkan sen – Kijun sen Bullish cross
- Price also rebound off kumo support
- Get in on March 24 after the price has cleared the resistance at around 8.69 , entry price is 8.75
4. Exit 2 (July 23, 2009)
- Tenkan sen – Kijun sen Bearish cross
- Get out at 13.71 (low of day)
- Profit = (13.71 – 8.75) = 4.96 per share
So, total profit is $5.50 per share (from the 2 trades)
