This quote is from my favourite podcast Top Traders Unplugged, "simplicity is the ultimate sophistication". The philosophy is explained in Barkha's November 8th blog titled: Why buying at all-time highs is a good strategy. Below are three trends following ideas that fit the strategy perfectly.
Docebo (TSX:DCBO)
After selling off from the IPO date of October 8, 2019, Docebo (TSX:DCBO) has nearly recovered that entire move and is now threatening a breakout to a new all-time high. Watch for a price move above $16.23 as it would suggest the beginning of an uptrend.
Park Lawn (TSX:PLC)
Park Lawn (TSX:PLC) is flashing a textbook trend following buy signal as price begins breaking out to a new all-time high. As the old saying goes, "stocks that make new all-time highs tend to continue making more new all-time highs". An easy way to define downside risk is to use the 200-day moving average as a trailing stop-loss order.
Dream Hard Assets Alternatives Trust (TSX:DRA.UN)
Dream Hard Assets Alternatives Trust (TSX:DRA.UN) has started to breakout from a 7 plus month consolidation pattern to a new all-time high. Like the other two ideas in this blog, the strategy is simple. The price action suggests the continuation of the prevailing uptrend. An initial stop-loss order could be placed at the 200-day moving average which also coincides with the recent low of $7.26.
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By Dwight Galusha from SetYourStop.com
Disclosure: The author holds shares in Docebo (DCBO) and does not intend to change the position within 72 hours.
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