Limit Orders and Buy Stop Orders to Enter BGZ

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The chart above is a 90 minute chart of BGZ, meaning that each candlestick you see is 90 minutes of price action. From looking at this chart, it seems most likely that BGZ will fall a bit more before returning to an upward trend. However, the price move to come is one that I wouldn't want to miss, which means there needs to be a "Plan B." That is to buy BGZ if the market starts to collapse, which will result in BGZ prices rising because it is inversely correlated to the stock market averages.

So here are my recommendations for entering BGZ......

Have a "limit" order in place (GTC) to buy BGZ if prices comes down to 63.00 or lower.

Also, have a "stop" order to buy BGZ at 73.00 if BGZ starts to rise sharply.

I am not going to suggest a stop loss on this, because I know from experience that using a stop loss for this trading methodology will decrease the returns over time. That is typical of mean-reverting types of strategies. So consider this a speculative recommendation and think of devoting a certain percentage of funds toward this trade but without a set stop point.

Pete