Bullish Technical Indicators Rule

Before continuing, please read the Disclaimer.

Every system has pre-requisites, triggers, targets and stops. This one has been back-tested on different stocks and here are the results over the last 3 years.

Long (buy) signals at close:


  • RSI below 50. Ideally would have crossed 30 in the days prior.

  • Divergence between 20 DMA and 200 DMA if coming from downtrend.


  • Stock price crosses 20 DMA crosses upward (Trigger)


  • Stock price crosses 200 DMA upward

  • RSI crosses 70 upward. (Results shown on the image.)

  • Stock price closes below 20 DMA.

Stop Loss

  • Close below 20 DMA.

The intention of this post is not to make a recommendation, but to make you aware that anything that is out there being publicized as a silver bullet, MUST go first by your own analysis and testing.

It pays to learn.


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