Moving to a weekly timeframe, BGZ completed a Sequential indicator the week of October 31^st (cell AE160).

Now for the daily timeframe, BGZ completed a Sequential indication on November 16, 2011 (cell AE760).

To summarize, BGZ completed a monthly Buy Setup in May 2011, then completed a weekly Buy ‘Aggressive Sequential’ week of Oct. 31st, and then completed a Daily Buy ‘Aggressive Sequential’ on Nov. 16th. Thus, all 3 timeframes were in agreement. It was the end of the downtrend for BGZ.
The monthly in May completed at $34.56
The Weekly completed at $31.71
The Daily completed at $32.45

Any of those dates may have been a good entry price but I felt more confident seeing that all timeframes had exhausted their downtrend. In anticipation of the daily signal, I bought BGZ on the 12th day of Sequential – November 15^th – at $31.25

Setting the Stop-Loss: To set the stop-loss on Sequential, we find the lowest low of the Sequential phase and subtract the true range of that bar from the low of the bar.  The lowest low (daily timeframe) occurred on October 27^th, and gave me a Stop-loss price of $25.18

The Stop-loss was never in danger because BGZ catapulted higher immediately on completion of the daily Sequential indicator.  Because BGZ is such a highly volatile fund – capable of large price swings on any day – I was looking for any of a number of short-term oversold indicators to tell me when to sell out of the trade.  One of my favorites – Demark Camouflage – triggered on November 25^th.  I sold on the open of Monday the 28^th at $35.95 for a very nice 15% gain in less than 2 weeks.

Below is a graphic illustrating the trade:

If you’d like to monitor your own stocks, ETF’s and mutual funds using trend exhaustion indicators try my Excel ‘Trend Exhaustion’ spreadsheet available on the Research Offers page.