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Stock market startegy : the five rules of find Reversal Days

Started by sebfr, September 02, 2006, 10:38:15 AM

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sebfr

Hi,

I would like to share with you one of my strategy to make good trades on market with always low risk and maximum of gains..This is personnal and it walks very well..

The secret is to mix several strategies issues of technical analysis. I combine five "indicators" together. Here they are :

1. Volume : Use volume to confirm price changes: if an uptrend is not accompanied by an increase in volume it is considered to be weak and lacking commitment

2. Candelsticks : The advantage of candlesticks is the ability to highlight trend weakness and reversal signals that may not be apparent on a normal bar chart. use Candlestick Reversal Patterns such as Dojis, hammer...

3. Oscillator : I personnally use Slow Stochastic Oscillator. never go long when Stochastic is overbought, nor short when oversold.

4. Bollinger Bands : the bands offer powerful support for signals from trend or momentum indicators. the bands indicate overbought and oversold levels relative to a moving average.

5. Support and resistance : The most important in swing trading. Draw correctly support/resistance on charts and you have an advantage on ohter people and chance. Support and resistance are the foundation of all chart formations. A support level is the price at which buyers are expected to enter the market in sufficient numbers to take control from sellers. Support levels, once penetrated, frequently become resistance levels and vice versa.

I hope i help you on your quest to making good trades. Each person is unique and each tarder is unique. This strategy will work only if it is in your mind to make trades like this.

And now three trades on the same chart :



sebfr

An another example with IDWD...