How does MagniZone 2.0 pick its calls?
Quick answerIt scans the most-traded US stocks and ETFs at every daily and 4-hour close and calls only A setups in an up market: Breakout Buys and Bounce Buys, each with an entry, a stop and two targets.
The details
The two calls
- Breakout Buy: a stock within 5% of its 52-week high breaking out.
- Bounce Buy: a stock in an uptrend that drops hard into support and holds.
One call per chart at a time, only A setups, only in an up market.
The targets and the stop
- Conservative target (TP1): close to the entry, so it is reached most often. Half the trade comes off there and the stop moves up to your entry, so the rest cannot turn into a loss.
- Aggressive target (TP2): the full move the breakout points to, twice the risk on the daily chart and three times on the 4-hour.
- Stop: under the lows of the last few candles, never closer than one ATR (the stock's average move per candle).
When it updates
When each daily and 4-hour candle closes. There is nothing to refresh. On days with no A setup there is no new call: it never forces one.
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