Given the busy atmosphere in Vegas last week for New Years, it appears that it remains a popular choice for entertainment for many. One place that I visited was the $WYNN properties and did find it interesting to see how different the traffic was between the Wynn casino versus the Encore.
However, when it comes to trading the stock, I prefer an greater edge from a probability stand point. To accomplish this, one can take many approaches but how about we take a look a simple approach: the volume bar buy signal.
Here is a Daily chart of $WYNN showing 6 buy points:
- Buy the first Green candle after 5 Red volume bars in a row
- Use an appropriate stop for your trading process
Based on a 1% trail stop, 2 of the 6 would have stopped out with a very small gain. The other 4 would have had better than 10% gains.