How to use our service
In order to use our service, there are 4 steps only:
Step 1: Grab your quality stocks list
Get the list from the app, which is published every Sunday. The higher the Percival Score, the more valuable it is as a reference. The system also analyzes a large amount of information on company fundamentals and technical analysis.
Here is an example of how we used the system to find Geely Automobile (175) on 3 Jul 2016.
In the stock pick published on 3 Jul 2016, 175 had a high Percival Score.
Step 2: Confirm the chart
Although the stocks in the stock pick list will be of high quality, you still need to time your purchase. Therefore, the second step requires a good technical analysis. To confirm the stock conforms to a pattern. Check out our patterns guide here.
Step 3: Put it on your watchlist and wait for a breakout
After confirming a pattern in Step 2, place it on your watchlist and watch closely for a breakout.
Continuing with the example of 175, its stock price broke through the buy point in the 4 Jul 2016 trading session.
Once a breakout happens, go to Step 4 for final verification and execution.
Step 4: Execution
When there is a breakout in the stock, you need to open your strategy checklist and do a final check.
For example, in the "Basic Strategy" below, we should not buy simply because 175 has broken through the buy point; we should follow the "Basic Strategy" to make a decision.
- Does our system show "market uptrend" on that day?
- Can you identify which pattern it belongs to?
- Is the stock price above the 50-day average
- Is the volume on the breakout day greater than 50% of the "average volume"
- Whether the price exceeds 5% of the breakout price (if it is, the risk is relatively high)
After checking, I found that all the conditions of 175 are satisfied, so I decided to buy.
Once holding 175, I followed this “Basic Strategy” to Stop Loss or Stop Gain:
- 7%-8% stop loss
- 20%-25% stop gain
- Sell if it trades below 50 MA
- Percival Basic Strategy