February 8, 2010 2:58 PM | 1 min read
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
The indicators of the stochastic non-trending indicator get activated in three ways:• Stochastic Oscillator Crossovers: The Stochastic Oscillator generates a buy signal when it falls below 20% and then rises above it. It activates a sell transaction signal when it rises above 80% and then falls below it.• Crossovers between the two trigger lines: A buy signal is generated when the %K crosses above the %D line, while a sell signal is activated when the %K line crosses below the %D line. The ideal transaction signal is generated when the %K line crosses above the highest %D line. A good transaction signal is generated if the %D line is crossed above the level of 80% or below 20% by the %K line.• Divergence & the Stochastic Oscillator: A warning signal about market reversal (divergence) is activated when the stochastic oscillator is unable to follow the upward/downward price movement in setting a new high/low level, respectively. A bearish divergence signal gets activated when the %D line is above 80 and it forms two downtrend peaks in a price uptrend market. A bullish divergence signal is activated when the %D line is below 20 and it forms two uptrend troughs in a price downtrend market.Forex -
More On Forex.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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