Hello guys,

I finally have some time on my hands, so i've decided to make a little contribution as a lot of people have been asking how i trade and what tools i use.

This is a complex of 3 Trading Systems. It is not a hybrid, i individually apply the each system to gauge the trend and price movement.

Before starting out i recommend you introduce yourself to the following material courtesy of Incredible Charts: Stock Trading Guide - Stocks and Shares

Bull markets
Bull markets commence with reviving confidence as business conditions improve.
Prices rise as the market responds to improved earnings
Rampant speculation dominates the market and price advances are based on hopes and expectations rather than actual results.
Bear markets
Bear markets start with abandonment of the hopes and expectations that sustained inflated prices.
Prices decline in response to disappointing earnings.
Distress selling follows as speculators attempt to close out their positions and securities are sold without regard to their true value.
Ranging Markets

A secondary reaction may take the form of a ‘line’ which may endure for several weeks. Price fluctuates within a narrow range of about five per cent.Breakouts from a range can occur in either direction.
Breakouts from a range can occur in either direction.




Advances above the upper limit of the line signal accumulation and higher prices;
Declines below the lower limit indicate distribution and lower prices;
Trends

Bull Trends

A bull trend is identified by a series of rallies where each rally exceeds the highest point of the previous rally. The decline, between rallies, ends above the lowest point of the previous decline.

Successive higher highs and higher lows.





The start of an up trend is signaled when price makes a higher low (trough), followed by a rally above the previous high (peak):


Start = higher Low + break above previous High.


The end is signaled by a lower high (peak), followed by a decline below the previous low (trough):


End = lower High + break below previous Low.




What if the series of higher Highs and higher Lows is first broken by a lower Low? There are two possible interpretations - see Large Corrections.

Bear Trends

Each successive rally fails to penetrate the high point of the previous rally. Each decline terminates at a lower point than the preceding decline.


Successive lower highs and lower lows.



A bear trend starts at the end of a bull trend: when a rally ends with a lower peak and then retreats below the previous low. The end of a bear trend is identical to the start of a bull trend.


What if the series of lower Highs and lower Lows is first broken by a higher High? This is a gray area - see Large Corrections.

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