So your stock has ran up 60 points since you bought it and it is no where near any key moving average or price support so when do we take profits as a trader?
- We could sell the first day that it closes at the low of the day. This could be our first evidence that the stock is out of buyers willing to pay to pay a higher price.
- We could continue to let it run until it loses the 5 day exponential moving average and does not retake it by the close.
- We could sell into a gap up if that occurs where it opens a few deviations from its average daily range, this could be our first sign of a blow off top.
- A trailing stop could be placed to sell our stock if it pulls back a set dollar or percentage.
- We could sell our stock based on a candlestick chart with a long body and upper wick showing increasing volatility and failure to keep new high prices.
If you are a trader and not an investor then you have to know when to get out and bank your profits. No tree grows to the sky. However Apple is beginning to poke a few clouds.