Dear Valued Members,
We are pleased to announce the inclusion of Below Action Price (BAP) Entry Signals in the SWS Alerts App. BAP Entry Signals will also be included in Beyond Charts via the SPA3 Investor - Equal Weighting Scan in a soon to be released update.
What is a Below Action Price entry?
The Action Price is simply a reference point and is the closing price 1 day after the signal, circled below ($56.22).
The Below Action Price entry is an alternative entry method for when a member misses the original Buy signal or is looking for further opportunities to buy. Buying a stock below its Action Price often presents a lower risk entry as the price is now closer to the ATR_TS than the original entry point. (See rectangle area in the chart above)
You can find the Action price on a Chart in Beyond charts by placing your mouse cursor over the price bar that is formed one day after the signal. The Open, High, Low and Close will appear in a data box .Alternatively, you can find the Action Price listed one day after the signal is generated in the Status screen in the SWS App.
You may enter at any time when the price of the stock is below its Action Price.
Orders to buy on your brokerage platform should be made as soon as practical once the price of the stock has closed below the Action Price.
Entering a new position at the market open or shortly thereafter is one option, whilst some members prefer to wait until the market has been open for at least 30 minutes.
There is no right way or wrong way to enter after a signal as long as you commit to purchasing on that day after the signal has been generated.
We trust this inclusion of BAP signals in the Scan and on the Alerts App will provide a more streamlined experience for all our members using SPA3 Investor.
As always, if you have any questions please send us an email at email@example.com or continue the discussion below.