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.
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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