Hello, Thank you for the kind words. I’m glad our strategy is working for you! Sorry for the late response by the way.

I am a swing trader and been consistently following your stock picking strategy (buying into strength of 52 week high etc) but with my own exit strategy has really worked wonder with me. I cud even make 5 times of my entry price over in a year and I am not kidding here.

Many Many Thanks and Tons of regards for sharing your knowledge.

Hello JNorris,

We do not use oscillators in our trading, as our methodology is kept simple by focusing on price, volume, and support/resistance levels. Of course, we also focus on key chart patterns such as valid bases that are poised to breakout.

Even though we do not use oscillators, you can determine when to sell into strength when you have profits that are 2-3x your initial risk (reward-risk ratio). Also, if you have a higher batting average (50-60%), then you can sell when you are up 2x what you risked.

Hope that helps.

Deron

Hello,

We do not backtest strategies in an automated sense. However, our stock trading techniques are based on more than 10 years of experience (we started honing our trading strategy back in 2001). As time progresses, we simply make adjustments and tweaks to help improve the effectiveness of the system.

If you are looking for backtesting software, I recommend TradeStation because I know a lot of traders are happy with the backtesting capabilities of their software.

Thanks for dropping by our site.

Well, for a simple but effective strategy, consider using the 10, 20, and 50-period moving averages on the hourly chart. When there is a crossover of the faster moving averages up through the slower moving averages, and all three moving averages are sloping higher, that is a basic buy signal. Then, you can tune your entry based on breakouts above consolidation. Our article on the chart patterns for the best stock breakouts could help you with that part.

Again, it is impossible to explain a trading system in the space of a comment here, but that will get you started. If you really want to learn how to swing trade effectively, I suggest checking out our complete online stock trading course for swing traders.

Good trading to you!

Hi…thanks for the reply..I trade using 1 hour chart and i usually are scalping..so in your opinion what is the most suitable indicator for me?

Hello,

First of all, we don’t use MT4, though I imagine it is similar to other technical analysis platforms.

As for the “best” technical indicator, it is not possible to answer that question without knowing the answer to many variables (such as your trading time horizon for starters).

All technical analysis indicators can help increase the accuracy of your trading, but the key is how they are used together as part of a system. More importantly, it is crucial to learn and master the signals from those indicators, rather than jumping around from one indicator to another.

For us, we focus primarily on price, volume, trendlines, and moving averages (20, 50, and 200-day MAs). Keeping it simple makes it much easier to spot key support and resistance levels on various timeframes.

Hope that helps.