Trend Following System - A long term trading method
I'm publishing this trading strategy (which is not a secret, considering that I draw my inspiration from this method which was originally presented on stockcharts.com). While this method is almost mechanical, applying a bit of common sense makes this method very interesting to at the very least explore.
The above example is of the SPX with examples given on the chart.
Trading Rules:
Long when
1) price is above or revisits SMA 150 (revisits/retraces from above)
2) Stochs move above 20
3) MACD Histogram crosses above 0-line
Buy at the high of the candle when both Stochs & MACD are above 20 and 0-line
Stops at recent swing low
Target is kept open as we trail the stops
Be alert when stochs drop below 80 and macd crosses below 0-line. Either price is making a correction or a change is underway.
Works best on:
Strongly trending markets
Reverse rules for short positions
Be extra cautious when SMA is flat or when you notice choppy price action
Do pay attention to fundamentals
The above example is of the SPX with examples given on the chart.
Trading Rules:
Long when
1) price is above or revisits SMA 150 (revisits/retraces from above)
2) Stochs move above 20
3) MACD Histogram crosses above 0-line
Buy at the high of the candle when both Stochs & MACD are above 20 and 0-line
Stops at recent swing low
Target is kept open as we trail the stops
Be alert when stochs drop below 80 and macd crosses below 0-line. Either price is making a correction or a change is underway.
Works best on:
Strongly trending markets
Reverse rules for short positions
Be extra cautious when SMA is flat or when you notice choppy price action
Do pay attention to fundamentals