Posts tagged oversold
Trading Tip Number 1
Dec 14th
Here’s a simple trading system using only a 50 or 20 Moving Average (Exponential biased if you like) and a stochastic or CCI oscillator as it’s signal.
In an uptrend – defined by MA(E) 20 or 50 take only oversold reading (from an oscillator such as CCI or Stochastic) as a buy signal (can use the next overbought reading as a stop of trade if you like)
In a downtrend – defined by MA(E) 20 or 50 take only overbought readings as a sell signal (can use the next oversold reading as a stop of trade if you like)
