Sunday, August 5, 2007

Holy Grail.

I got questions all the time about the Holy Grail, invented by linda Raschke. The basic idea is that during strong trends, when price price pulls back to the 20 period Moving average, that is usually a very strong buying point and usually finds very eager buyers in uptrends and very strong sellers in downtrends.

Here's an attachment that explains in full detail.

http://www.lbrgroup.com/images///raschke_pt2_0304.pdf

This is by far one of the most consistent patterns i trade but it works best during strongly trending markets/stocks. Up or Down. Choppy and sideways mrkts/stocks will give many false signals.

No comments: