ADXtender Example: TRHC

Charles Schaap

Tabula Rasa HealthCare (TRHC) is an IPO stock that made a strong upward move in 2017. ADX hit 50 (power trend) in November 2017, and then the ADX line began to decline. TRHC has been in a consolidation for the last 3 months. The setup is an ADXtender (from ADXcellence--Power Trend Strategies, 2006). It would create a potential entry above the $39.56 high from last week. The stock is exhibiting a volatile price pattern, so this suggests it would be good to enter with a smaller number of shares to reduce risk, and then add more shares as the trade works (if it does). If the +DMI slides below 25, then the trade would need to be reassessed.