This simple to understand trading system was developed by Dave Landry .
The system uses the 20 period exponential moving average and its relation ship with price to create buy/sell signals.
Buy alert: If today’s low and yesterday’s low is greater than the 20-day EMA. This signal remains valid until the low touches or falls below the 20-day EMA.
Buy entry: Place a buy stop order a few paisa above the two-day high. This will help ensure buying with the new trend and help to avoid false signals. Keep order until filled or as long as the buy alert is still valid.
Long exit: Place a stop equal to the 20-day EMA. Continue to update this stop daily to form a trailing stop.
Sell alert: If today’s high and yesterday’s high is less than the 20-day EMA. This signal remains valid until the high touches or rises above the 20-day EMA.
Sell entry: Place a sell stop order a few paisa below the two-day low. This will help ensure that you will sell with the new trend and help to avoid false signals. Keep order until filled or as long as the sell alert is still valid.
Short exit: Place a stop equal to the 20-day EMA. Continue to update this stop daily to form a trailing stop.
