The WMI gave a "buy" signal on 2 November and a "strong buy" signal on 3 November. Here we have a good example of efficient trading using the WMI.
The most accurate readings occur when the indicator says "Strong buy". The strong buy came yesterday at 9.55am when the FTSE 100 was trading at 5,000. This proved to be an excellent level to go long, as I write the FTSE 100 is trading at 5,080.
Since a "buy" signal is equally a signal to go long, according to the guidelines you should have gone long from 5,075 on 2 November with a half position and yesterday you should have added the other half at 5,000. Your average price would be 5,037 and your position would be showing a profit right now.
You can take a full position on a "buy" but it is not recommended. As you can see it is preferable to take a full position when the signal is "strong buy". In the above example it worked very well.
More about the WMI, click here
To learn more go to http://www.eyield.co.uk/
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