CHGG - Dec 24 100SMA StrongWeak BounceI was trying to expand the range of my pool and looked at fundamentally weak companies that somehow had seen price climb. CHGG was one which I had found.
Sector: Education
Both EPS and Revenue has seen a drastic drop for the past 7 quarters.
This drop in revenue is due to the free AI models which are able to produce similar to better results vs their paid services. I could not find a reason why their stock had risen since their 14 Nov earnings
Does it respect the H1 100SMA (Min 3Months): Yes
Is it a Hype Thematic (AI, Solar): AI is an inverse hype theme for this company since it is eroding it’s business.
100SMA StrongWeak Bounce 🏀 (0.5R) v1.0
Trading risk at 0.5R as we are testing this strategy
This trade model is based on us riding the 100SMA trend waves of the strongest and weakest companies. It only executes well when greater force (RUT & SPX) is trending. Entries are at greater force key levels when it is consolidating. When greater force is taking off it is too late.
Entry
Within Stdev 100 zone
SL = ATR14 * 2 (Run full course no early exits)
Trailing stop (Previous Day Low or high)
Price launch off (D1)
D2 Closes
D3 Move SL to D2 Low