Sunday, February 16, 2014

Why I prefer Technical Analysis? and Steps to develop a Strategy

Technical Analysis will help you spot a move much earlier, proof below. (this is just an example)

On July 03 - I sent this Ihub message to few of my friends along with a chart, and also alerted to PSS members via chat.

Link :


Guess what happened!

For the setting on RSI weekly pullback and video lessons visit

Another example:

What happened ? !!!! 
Need more Proof !!!! Because I have many since 2009. Any recommendation I make on how to scan for profitable move comes after a huge research, and going over multiple charts multiple times to land on a solid conclusion on profits.

My advice to anyone who is willing to take the effort to learn swing trading is to learn from scratch, erase what you know on technical analysis and start from scratch. You will be successful !!! 

Why I stress on learning Trendlines, Support and Resistance? 

I don't need to explain what happened, you can see for yourself. 

The two red trendlines pushed the stock down, also observe where the first push was supported, weekly closes. This move was a good example of $ Price waves.

There are four steps in defining a strategy
1) Develop a scan
               Know what you are looking for in terms of price behavior and volume. Then match the indicators to do a scan for it (I can help you pick the right indicator for the scenario you are looking for, or use my functional indicator classification table, when you have a doubt, all you need to do is ASK). 

2) Back test
              Back test your scan and find out how effective your scan is in picking up what you need

3) Live test
              To avoid the doubts of hind sights, paper trading & live test your strategy.

4) Develop Rules
              Most important step, have rules for every trading strategy, revise them as needed.


Before I am done, Don't believe what others are saying. That would include me as well, test yourself and conclude whether the methods (not if I am honest) are working. Lets change this industry !!!! and send the robbers back to where they belong, Ignorance will cost you. 

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