Trading Strategies – PickWiseAI

Investment Strategies Based on Stock Trends

⬆️ Macro Trend Rating: Uptrend (Bullish trend)

Buy at or below the recommended buy price or if the buy signal is triggered. The Micro Trend Rating (minute-by-minute basis), current health rating, and volume surge can be used to identify good candidates that are likely to show gains. Consider setting a take-profit limit (e.g., 3%). This strategy is ideal for day trading or short-term gains, as momentum may be short-lived—possibly just a few hours or one trading day—often triggered by positive news. Review the Forecast Rating, Market Cap, Volume Surge, and Health Rating columns to support your decision.

⬇️ Macro Trend Rating: Downtrend (Bearish Stocks)

Buy at or below the recommended entry price and use a stop-loss limit (e.g., 2–3%) to protect against losses. Sell when the price rebounds. This approach is suited for long-term investments in large-cap companies following a “buy low, sell high” principle. Review the Risk (%), Market Cap, Volume Surge, and Health Rating for better risk assessment.

🔁 Macro Trend Rating: Mixed or Recovery Stocks

Buy at or below the recommended entry price and apply a stop-loss limit (e.g., 2–3%) to manage risk. Sell when the price increases. This category typically signals a temporary dip in a healthy stock or a possible trend reversal. Evaluate the Risk (%), Market Cap, Volume Surge, and Health Rating for insight.

Comparison of Scenarios

💡 Tip 1: Always use stop-loss and take-profit limits to reduce losses and lock in profits.

💡 Tip 2: Use the pre-market ratings (e.g. between 9:15 to 9:30AM EST) to identify stocks that are likely to show good momentum during early market hours

💡 Tip 3: Avoid trading without an entry (risk, price) and exit (profit/loss) strategy

💡 Tip 4: Be consistent. Follow a process.

Using Macro Trend, Micro Trend, and Health Ratings to identify safer scenarios

Start ➡️

🔍 Macro Trend:
- ⬆️ Uptrend
  - 📈 Micro: Uptrend → Strong short-term momentum but possibly near a peak. Watch for pull-backs.
  - ➖ Micro: Mixed → Temporary dip or consolidation; trend may resume. Ideal entry if volume and fundamentals are strong
  - 📉 Micro: Downtrend → Short-term loss in momentum or pullback. Wait for micro-trend reversal or set a lower buy limit
- 🔁 Mixed
  - 📈 Micro: Uptrend → Early signs of recovery or reversal. Entry possible with moderate risk and tight stop-loss.
  - ➖ Micro: Mixed → Uncertain trend. Consider waiting or allocating smaller capital with stop-loss protection.
  - 📉 Micro: Downtrend → Likely short-term decline. Riskier; only consider if Health Rating is strong and risk is acceptable.
- ⬇️ Downtrend
  - 📈 Micro: Uptrend → Rebound in progress. Good entry for swing trades with proper stop-loss.
  - ➖ Micro: Mixed → High uncertainty. Consider only if long-term fundamentals are strong.
  - 📉 Micro: Downtrend → Avoid unless long-term conviction. Risk of further decline is high.

✅ Use Health Rating to confirm: Good (✓), Moderate (⚠️), Weak (✘)

📈 Safer Trading Scenarios Flowchart

            +----------------------+
            |  Start: Evaluate     |
            |  Health Rating       |
            +----------+-----------+
                       |
        +--------------+----------------+
        |                               |
   Good or Moderate                Weak or Unrated
        |                               |
        v                               v
+--------------------+        +----------------------+
|  Macro = Uptrend   |        |  Macro = Down/Mixed  |
+--------+-----------+        +-----------+----------+
         |                                |
         v                                v
+---------------------+         +---------------------+
| Micro = Uptrend     |         | Micro = Uptrend     |
| ➤ Best Scenario     |         | ➤ Recovery Potential|
+---------------------+         +---------------------+
         |                                |
         v                                v
+---------------------+         +---------------------+
| Prioritize entry at |         | Use tight stop-loss |
| support or rating   |         | and monitor signals |
+---------------------+         +---------------------+

🧭 Scenario Comparison Table

Scenario #	Health Rating	Macro Trend	Micro Trend	Safety Level	Suggested Action
1	Good	Uptrend	Uptrend	✅ Highest	Ideal for short-term trades; consider entry near support
2	Good	Mixed	Uptrend	✅ High	Early recovery sign; trade with moderate confidence
3	Moderate	Uptrend	Uptrend	✅ High	Momentum-based; watch for entry signal
4	Good	Downtrend	Uptrend	⚠️ Medium	Use stop-loss; suitable for bounce trades
5	Moderate	Mixed	Uptrend	⚠️ Medium	Potential reversal; use small positions
6	Weak	Mixed	Downtrend	❌ Risky	Avoid unless strong reversal indicators emerge
7	Weak	Downtrend	Downtrend	❌ Very Risky	High chance of loss, best to avoid