Here’s a high probability PowerRatings strategy you can use
One of the great things about
PowerRatings
is that they can be used in so many different ways. Once you
understand the basics, you can combine them with a myriad of trading styles.
Each day I’m going to highlight some of the different ways you can incorporate
PowerRatings
into your existing trading strategies and hopefully teach you a few new ones
along the way. I’ll also show you some of the ways our members are using
PowerRatings
to improve their trading.
In today’s example, let’s take a look at
SanDisk
(
SNDK |
Quote |
Chart |
News |
PowerRating). 5.36%
Over the past couple of week’s we have shown you
different ways that you can combine
PowerRatings
with technical analysis. We’ve covered Stochastics, RSI, Fibonacci Retracements,
Moving Averages, patterns, etc (you can find all of them in the
PowerRatings Strategy Library).
However, today we are going to look at something
different. Here is a way of using
PowerRatings
with
TradingMarkets Capital Appreciation Program (TMCAP). TMCAP is “A
Program For Low-Risk Investors Seeking Strong, Consistent Returns From Their
Investments.“
On 2/21/06 SNDK recorded a
PowerRating
of 9 (blue
line). The very same day TMCAP gave a buy signal (green
line) in SNDK, meaning you should buy SNDK at the open on 2/22/06.
SNDK rallied more than 5% on 2/22/06 and TMCAP
gave an exit signal (purple line), meaning
you should sell (close out) your long position in SNDK at the open on 2/23/06.
When two quantified trading methods combine to
give the same signal, you can trade with a high degree of confidence that the
outcome will be favorable, as SNDK shows.
Click here
to take a free trial of
PowerRatings.
You can also
attend a free
class on how to use
PowerRatings
presented by Steve Primo, our Director of Education.
Ashton Dorkins
Editor-in-Chief