Trade Of the Week | FLGT

StatsEdgeTrading

Welcome to Stats Edge Trading's "Trade of the Week" on Mondays! Each week, we dive into the systems-triggered signals and highlight the one standout trade that caught our interest. In this volatile market environment, the primary goal is to get in, capture the gains, and exit efficiently. While Stats Edge Pro members typically have access to 30 symbols weekly, this week's count dropped to 20, as there were no triggers from the trend following system—largely due to the current market conditions.

Quick Market Overview

Before jumping into this week's spotlight trade, let's talk about the current market conditions. Right now, I'm refraining from making significant buys. The day's market has shown a slight bounce, but it's crucial to see if this low holds.

Why FLGT Caught My Eye

Let's zoom in on FLGT, which triggered today, sparking my interest. Reviewing the weekly chart, we notice an undercut at a significant support level. This move likely panicked many long-position holders and tempted short sellers. No earnings or news prompted this, but it resulted in a strong rally, presenting a potential opportunity.

"A lot of people probably got out of their long positions. Those people ended up being wrong and then we ripped to new highs."

Analyzing the 30-Minute Chart

On the 30-minute chart, the entry point suggested by our algorithm is showing some resilience. While I personally might enter slightly above this exact point, the goal is to ensure this area holds strong.

Protective & Time Stops

Now, onto exit conditions:

• Protective Stop Loss: Although wide and rarely triggered in our tests, this acts as a safety net for extreme market conditions.

• Time Stop Approach: Adhering strictly to my testing, we exit the trade next Monday regardless of its price. This unconventional method has proven effective, even if it challenges the norm.

Why Consider a Time Stop?

A video on our channel delves deeper into the rationale and benefits of a time stop. It's a strategy worth exploring, especially if the conventional approaches haven't served you well in the past.

The Bottom Line

We're buying on this pullback, with an exit planned for next Monday. The algorithm picked the $17 mark due to historical resistance.

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