Trading System

 Finding a trading system that works, depends a lot on your level of tolerance for sentiment... being your own devil to control... Many different sites that expand on the subject of charting as it applies to online trading demonstrate for the most part, some sound information, but are very dry and hard to grasp.

It must be terrible for novices... as well for intermediates alike.

This trading system incorporates trend recognition in practice and highlights trading triggers for swing trading for those that wish to take part in online trading gorilla style. In a nutshell... the indicator  (slow stochastic 50,1) which is actually the second indicator from the top is your indicator trigger for trading. Nothing is foolproof, and this trigger is one of many a person could incorporate...

So feel free to expand on it in your own style.

The supporting indicators you will notice give some advance heads up that some type of price action is in progress.



You must not try and predict the outcome, but learn to rely on the evidence presented in the Slow STO 50,1 crossovers... You will get some whip, but it should be minimal if you react quickly to the triggers and don't second guess. There will be some losses, but for the most part they should be minimal. As an averaging system for trading... you should be able to stay on the right side of the trade with practice, taking more home than you give away and a lot of dry runs are needed on your part to be good at it.

Entries are made on the upswing of the indicator over the 20 band and hold until one of the next three exit triggers are reality...  the supporting indicators help to evaluate the potential for any of the entry or exit triggers forming...  Compare past supporting indicators and their position from previous rallies, and see if they are out of position, (such as indicating a downtrend is in progress) not responding to the upside trigger buy crossover, and if so, then you may want to pass on a particular buy trigger that seems weak at that moment... anticipating the crossover can surprise so use your best judgment.

The Public Charts   for prospects

Enter on...
 1) a crossover up over the 20 band...

Tip 1:  Look for good looking crossovers... lots of confirmation from supporting indicators making the same trigger... if they are not confirming... consider skipping the trigger. Don't forget to view in the 60 minute for day trades, as well as the weekly for long holds.  Use "Fill the Chart" for each time frame and checkout the longer "predefined" time frames as well.

Exit on... 

1) a crossover back down over the 20 band... took the trade and it went back on you
2) a crossover back down over the 50 band... been holding the trade up to and over the 50 band
3) a crossover back down over the 80 band... been holding the trade up to and over the 80 band

These downward crossovers will be relevant to a position that you have entered

Tip 2: If the market is down trending...  you will adopt a shorting strategy and be selling the tops in the trading system and the below description would be opposite as in selling the stock short from a beginning trade from above them 80 band and buying when the crossover comes back up on you.

Sell short on...
1) a crossover down over the 80 band...

Buy back to cover and take profit or minimize loss on...

1) a crossover back up over the 80 band... took the trade and it went back on you
2) a crossover back up over the 50 band... been holding the trade down to and under the 50 band
3) a crossover back up over the 20 band... been holding the trade down to and under the 20 band

These downward crossovers will be relevant to a position that you have entered.

Please note when shorting:
Shorting is a wild ride on margin... and you should undertake shorting only after a lot of practice... Brokers can call the short and liquidate at any time, so this adds a rather looming element of risk such that you may find the position closed unexpectedly... possibly in a position of loss. Trade in a broad market down turn from a confirmed down turn... only from an entry above the 80 band... even better.......... trade very poor fundamental stocks.

For going long:
Once out... you will not enter back into a trade unless the indicator swings back up over  any of the above triggers mentioned... This is an averaging swing trade strategy best aimed at very strong fundamentally supported stocks.... It will work extremely well at the bottom of a down broad market reversal that has been verified and not before. Using this trading system in reverse for shorting is just as effective when a strong broad market finally reverses.

Entries taken to go long made at a time after the crossover of the 20 band are diminished. The higher the entry... the less potential for a good trade average... unless the broad market is really hot.

It is advised that any exits should not be shorting efforts until you are well seasoned.

I must admit that the subject is a formidable one... all the research on indicator qualities is tedious and as such is not the type of thing that a person hoping to be able to trade on line effectively may want to undertake... rather they would like to skip that part and witness a 'trading system" in action... having said that I have refurbished The Public Chart   List to reflect the conclusion of a lot of time spent learning to put it all together. Witness some gorilla trading swings as simple as it gets... The charts speak for themselves.

GLTA Lostoutwest

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