A Variation Of The Holy Grail
The 20-day moving average is one of my favorite indicators to track when I
look for pullbacks. Why? Because stocks simply rebound or rally after finding
support at or near this moving average.
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The signal is even better when there is some other technical
signal along with it.
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This is along the lines of Larry Connor’s and Linda Raschke’s
Holy Grail, but instead of the 20-day EMA and ADX reading of more than 30, I use
the simple MA and watch for bullish action in stocks with a
3-month relative strength ranking of 80-99 from TradingMarkets.com.
Until tomorrow,
Duke