The Simple Approach – Volume Bar buy in Ruger

This sector and industry  has some participants at the moment that are the height of debate this weekend following the horrific events in Connecticut this week.

I am not a big gun fan myself, despite living in Texas, but this post is not about the issue of gun control or my beliefs on the issue. What I want to show here is what the market is thinking about one participant in particular – $RGR (Sturm Ruger & Company).

Here is a Daily chart showing the recent action:

This stock remains under selling pressure – and likely to continue at least until the $44 level. For those that like the Simple Approach, here is the trade:

  1. After 5 RED volume bars in a row, buy the next Green candle. Use your exit trading process, stop.
  2. So far 4 occurrences (likely 1 very quick stop, one small gain, 2 nice gains)
  3. The last occurrence would have netted a $15+ gain
  4. Current volume bar count is 6 RED in a row

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