TA Tutorials, page-11

Hi All

Going to show all of you folk a very simple trading strategy now that you are all getting accustomed to your tool set as advised in tute 1...lol




Here we have just two tools required here .........a) 5 ema and the bollie bands.

Its a moving average strategy, no EW, trendlines , fibonnaci etc, just got to follow a simple rule.

" 5 ema must be above the 20sma ( blue line above red line ) to stay in the trade, when it drops below the 20...........out."

Now , i am a long term holder and I am never OUT of a trade completely cause i dont want to miss out on material FA announcements, but my allocation of holdings do vary along the journey or should i say, the waves...., aka the green BUY bubbles vs the red SELL bubbles.

Now i dont follow this rule anymore cause i found another strategy that gives me a superior return which i will explain later , but for a beginner trader, who wants to get an edge and a bit more leveredge risk / reward, this is how it works.

My intial entry was 70c , i entered when the 5 ema crossed the 20sma as per the rule , i then SOLD 60% of my holdings when SP hit the first red bubble and blue line dropped below the 20sma ( as per the rule ) .

I then put that 60% back in at a lower price in the next green bubble when the 5ema crossed the 20sma once again, and did the same process until the current yellow arrow.....

Now i have gained roughly an extra 50% of holdings just by following that basic rule in BOLD and it could be more depending on your risk tolerance

For more info go to YOUTUBE and tune into the master Rayner Teo....

imo