Is Ford (F) making a move? 03/17/13

Ford has been consolidating after a large move up, and wants to move up again. No guarantees how long this up signal will last though. The Volare trading system that I have developed on Ford gives me multiple entry points. I have realized that the fastest way to lose money on paper (or real) is to keep betting against a trend! The best thing I can do is the opposite, which is to add to positions in the direction of the trend. I have not done that before. In fact I find it very hard to do; but I am going to force myself to do that, as that will pay off in the long haul.

Once a trend starts, no one really knows how long the trend will last. So why not start with a small position? Then if the trend continues, I add more to my position. If the trend quickly reverses against me, then I can close my position with a small loss. Pristine recommends a method that enables you to take some profits along the way. I would say that is also a good way to go. One can always use a cyclical indicator like stochastics to time short term entry or exits. I like my cycle accelerator/decelerator black line to do that in the chart below the price chart. Each person can use their own favorite methods.

The Volare system gives you multiple positions in a strong up move. Each of these could be an additional position I can take. In fact one could do the opposite in a downtrend and sell call spreads at each signal. Currently the entry signal is up and I have taken a small starting position. By doing back testing, I found that a simple MACD>0 for long positions, works quite well on Ford as well.