Here’s a strategy you can use almost daily…
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.
Here’s an example from earlier this
week:
CDC Corporation
(
CHINA |
Quote |
Chart |
News |
PowerRating) had a
PowerRating
of 9 on 1/30 (see chart), meaning it should have been on your list as a
potential buy. Let’s take a look at the chart and see if we can find a good long
setup.
If you have read “Street
Smarts“ you will recognize this as a “Holy Grail” setup. If you
are not familiar with this pattern, here’s are the rules:
1. A 14-period ADX must be above 30 and rising.
2. Look for a retracement to the 20-day exponential moving average.
3. When the price touches the 20-EMA put a Buy Stop above the high of the
previous bar.
As you can see, all the above criteria was met
the morning after
(
CHINA |
Quote |
Chart |
News |
PowerRating) had a
PowerRating
of 9. If you followed the rules you could have bought
(
CHINA |
Quote |
Chart |
News |
PowerRating) for less
than $4 and had more than a 10% gain in 1-day!
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