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Holy Grail Trading Strategie (Based on daily datas) |
02-Jan-09 |
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Introduction
This trading startegy is only nicknamed "holy grail" it is very easy to follow. The trading-bestseller authors and gurus Linda Bradford Raschke and Laurence Connors describe the holy grail in their book "Street Smarts: High Probability Short Term Trading Strategies".
Street Smarts: High Probability Short...
Theory
With this method, first of all, the strength of a new trend (upward or downward) is identified. If a strong trend reaches new highs or lows, it is advised to buy or sell with the first countermovement.
Once again in "slow-motion": we have a strong upward trend. If the price reaches a new high (highest high of the last 20 days) a countermovement begins, the rate is sinking. We buy, assuming the stock will continue its way up. With a downward trend you just put this example upside down.
This is a trading strategy with a low risk attitude. The average trading span is 1-5 days.
Trading-Advice for BUY |
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Set a "Buy Stop Order"above the high of the previous candle. |
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After executing the order, you set a "Protective Sell Stop to the newly formed "Swing Low.
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You are stopped (out). Now re-enter at your initial Buy Stop Order. |
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We set our breakeven just above the highest high of the last 20 days (20 day high). |
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With the trade coming in your direction, you reset the stop to secure your gain. |
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Trading-Advice for SELL |
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Set a "Sell Stop Order above the low of the previous candle. |
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After executing the order, you set a "Protective Sell Stop to the newly formed "Swing High. |
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You are stopped (out). Now re-enter at your initial Buy Stop Order. |
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We set our breakeven just above the lowest low of the last 20 days (20 day low). |
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With the trade coming in your direction, you reset the stop to secure your gain. |
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Holy Grail Stocks |
Symbol |
Signal |
Entry Price |
Protective Stop |
Breakeven |
NO SIGNALS |
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Keep in mind: "There is risk of loss in all trading!" |
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