My Trading Method

It has taken me 4 active trading years to complete my trading method which was born in my mind in the form of an idea created through my imagination.

• I have mixed faith with my idea.
• I have formulated a plan for the transformation of my idea into a physical and financial reality.
• I am putting the plan into action with the aid of the Definite Trading Method.

I have also tried to keep the system simple so other people can follow them.

The trading method allows for 3 entry and exit points within bullish or bearish stocks.

Bullish Stocks

Bullish Reaction Breakout

This indicates the stock has made a breakout from bullish reaction and may advance into a rally.

Markets must be in a bullish trend.

This is the strongest buy signal for a bullish stock.

• Enter @ the market if the stock shows a positive move on next treading day.
• Stop Loss @ bottom trend line
• Exit when the stock hits or is close to the upper bullish trend line.

Bullish Breakout from Bullish Trend

This indicates the stock has broken out above the upper bullish trend line.

Markets must be bullish.

• Enter @ the market if the stock shows a positive move on next trading day.
• Stop Loss @ old upper trend line, new bottom trend line.
• Because there is no upper trend line on this stock yet, use a trailing stop to lock in profits if the stock moves against you

Bullish Breakout from Bearish Trend 

This is an indication that the stock has broken out of and then opened and closed above the upper bearish trend line from a bearish stock.

Breakout must not come from a bearish stock that is in a bearish rally, if it does, stand aside.

Markets must be bullish.

• Enter @ the market if the stock is going to open positive.
• Stop loss @ just below the purchase price.
• Because there is no upper trend line on this stock yet, use a trailing stop to lock in profits if the stock moves against you.

Bearish Stocks

Bearish Reaction Breakout

This is an indication the stock has made a breakout from a bearish rally which might move into a decline.

This is the strongest short signal in a bearish stock

• Enter @ the market if the stock shows a negative move on next trading day.
• Stop Loss @ upper trend line
• Exit when the stock hits or is close to the lower bearish trend line.

Bearish Breakout from Bearish Trend

This indicates the stock has broken out below the lower bearish trend line.

Markets must be bearish.

• Enter @ the market if the stock shows a negative move on next trading day.
• Stop Loss @ old lower trend line, new upper trend line.
• Because there is no lower trend line on this stock yet, use a trailing stop to lock in profits if the stock moves against you.

Bearish Breakout from Bullish Trend

This is an indication that the stock has broken out of and then opened and closed below the lower bullish trend line in a bullish stock.

Breakout must not come from a bullish stock that is in a bullish reaction, if it does stand aside.

Markets must be bearish.

• Enter @ the market if the stock is going to open negative.
• Stop loss @ just above the purchase price.
• Because there is no lower trend line on this stock yet, use a trailing stop to lock in profits if the stock moves against you.