STOP worrying about the Markets… We filter for the STRONGEST INVESTMENTS we can find, based on Relative Strength and Volume…Buy them when they bounce off the Green Line, or when the Money Wave comes out of the Green Zone!
KEEP IT SIMPLE. Buy the STRONGEST Funds in the Green Zone, and take Profits in the Red Zone.
Investment should meet these 3 RULES:
1. Above the Green Line.
2. Above 90 Relative Strength Factor* (Not RSI)
3. Money Wave should be < 20 and turning up.
A. Short Term Traders:
Buy the Strongest Investments when the Money Wave Closes below 20, and then turns up.
Wait for a Close above 20 (for a buy signal).
Many try to buy 5-10 minutes before the Close, if the Money Wave is going to Close >20.
Place sell stop loss under recent Swing Low or Support. (MUST CLOSE < Support)
When Money Wave > 50 (Daily or Intra-day), and it is GOING TO CLOSE below your entry price, EXIT!
When Money Wave > 80: Caution, it is probably too late to Buy.
If it is GOING TO CLOSE below the Pink Line (10-day avg.) EXIT!
B. Medium Term Traders: Keep the Strongest Funds as long as they are Above the Red Line (50-day avg.) and Above 90 Relative Strength.
C. Longer Term Investors: Keep the Strongest Funds as long as they are Above the Green Line and Above 80 Relative Strength.
Only buy Investments: Above the Green Line (250 day average) and Above 90 Relative Strength!
All Investments will eventually RETURN to the Green Line, so don’t Buy Way Above the Green Line.
If the investment is Below the Green Line, it is inferior, and should be sold.
* Relative Strength Factor (Major Indices, Long Term Investments, and Stocks > $100 Billion Market Cap require 80 Relative Strength.)
Relative Strength value for ETF Funds comes from www.etfscreen.com (ETF).
For Stocks use SCTR (StockCharts site bottom left of Chart) or Investor’s Business Daily (IBD) Relative Strength. We prefer IBD’s Relative Strength, as it is weighted more to a 1 year time period (than SCTR).
Green Line is 250 day ema average (exponential moving average).
Money Wave setting: Slow Stochastic 5,1
If the Money Wave is under 20 or in Green Zone, you have a higher chance of making $$$, than if it is above 80 or in Red Zone.