Long Term Weekly Trend line Trading Strategy – 0 to 4/6 or d/c
The long term minimal trading strategy has a 100% record over the last 17 years. However as past performance does not guarantee future performance clearly there is no guarantee!
- Use monthly pivots for your PRIMARY wave count, or just peaks and bottoms .
- As provisional weekly pivots appear enter them to form the MAJOR wave count.
- Provisional pivots may later disappear but still label them as they appear.
- Up waves tend to have 5 pivots;
- Bottom pivot is 0, up 1, down 2, up 3, down 4, up 5
- Down waves tend to have 3 or 5 pivots;
- Peak pivot is 0, down a, up b, down c, up d, down e
- If one pivot is missing, eg 1 but you get pivot 2, then enter it where it naturally should fit (assumed pivot – this should be as a minimum a confirmed daily pivot).
Using your Trend Line
- At a PRIMARY peak /bottom pivots start your trend line This is point 0.
- Move trend line to next major count leaving the origin at 0 to 2/4 or 6 in an uptrend and
- b or d in downtrend as the pivots are defined.
- Go long or short when either the trend line is broken after major count 4 or provisional primary pivot, whichever occurs first.
Long Sep94 44.26
Short Aug00 145.59 +101.33 (228%)
Long Mar03 84.73 + 60.86 (366%)
Short Jan08 132.06 + 47.33 (473%)
Long Jul09 94.13 + 37.93 (559%)
To 25Sep11 113.54 + 19.41 (602%)
Average compounded return over 17 years 35%
M – Monthly pivot – Primary Wave Count
W – Weekly pivot – Major Wave Count
P – provisional pivot
A – assumed pivot