when you get a method /idea to trade a certain way instead of just throwing money at the market , you can backtest your method to see that it works
basically you look back in the price history of a stock to see your buy and sell triggers. If your sells and more than your buys your method works.
With the Rol example. My buy signal is the dominant break. I actually buy the reversal candle on day 3 at 100c. My sell signal is the 7 and 14 day moving average cross at 220c
so i know that my method worked on this example. You can do it visually on any chart
Once you know your method works you cant looooooooossssseeee
