Most of us begin by reading about other people’s systems, finding one that appeals to us, and then using it. After a while most of us start tweaking our borrowed systems – until they gradually become as individual as we are. We may remember where our system had originally come from, but by now it…
The Reversal system aims to do the opposite of the Pullback system: instead of catching trends, it’s designed to trade their reversals. It looks for a different pattern than a Pullback system and takes different actions. This is why each trade needs to have the name of a specific system attached to it – to…
It feels tempting to buy a stock that’s hitting new highs, but many buyers get shaken out by pullbacks that tend to follow rallies. That’s how people end up buying high and selling low. If you identify an uptrend and then wait for a pullback, you can get your stock at a discount (and if…
As you scroll through the charts of various stocks, it is essential to have a very clear image in your mind of the pattern you’re looking for. Every trading system is designed to handle a specific price pattern. When you find a chart that matches that pattern, work up a possible trade. Be sure to…