Tuesday, October 9, 2007

The Best Way to Learn it is to See it.: The Holy Grail Setup

This is a very powerful setup. It's most reliable in stocks in strong trends and pull back smoothly and constructively to the 20 EMA. It is most reliable on the daily time frames even though it works on all time frames. Just remember:

1. Stock must in a strong trend.
2. Stock must pullback smoothly and constructively.
3. A reversal candle of some sort(doji, hammer etc) is nice but not important.



Bubs said...

Thanks for the explanation, I've been wondering what you were talking about on Wallstreak when you mentioned the "Holy Grail Setup". How do you determine your entry point on these setups? Buy at the end of day after bounce from moving average or intraday setup? Thanks


Time Is Money said...

i like to buy at the end of a day after a bounce. or if see a clear day where volume is big and i see a reversal like a hammer then i wanna get involved in the reversal. Look at DRYS example. I recall buying it into the reversal intra day and when it closes well and above the 20 EMA. I was confident that a winner was on my hands.

Doug said...

Good stuff Stewie, thanks.

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