The R-4 Trigger System

in BP Gold GOld juniors Gold Market o shares silver by admin — December 8, 2010 5:52 pm | no comments

I don’t care what kind of trader you are… If you don’t have a system in place, you’re blindly throwing money at the market, hoping for the best. We learned that the hard way in the beginning. But after developing two of the easiest trading systems around — our news-based system and the R-4 Trigger System — the gains have been non-stop… Take a look at the iShares Silver Trust (ETF) On November 18th, we bought the iShares Silver Trust (ETF) February 25 calls after the underlying stock hit its trend line and bounced up. Plus, on a six-month candlestick chart with MACD, DMI, and Williams % Range (W%R) showing oversold reads, we caught a long-legged doji followed by a doji reversal candlestick right next to it — at the bottom of a recent sell off. That was our turnaround signal. Fourteen trading days later, we walked with 140% gains. What we did here wasn’t a fluke. It was simply another trade that met our technical parameters. Without that system in place, that 140% gain was nothing more than a pipe dream… But that’s not where this story ends. Hours after taking that 140% SLV gain, we went short SLV with the February 2011 29 put at $2. And we couldn’t have timed it better… An hour later, the stock did just as we called for. It plummeted. Again, this wasn’t a fluke event. Sure, we had the rumors of a possible weekend rate hike out of China, but take a look at the technicals here. Every time, the underlying SLV stock crossed above the upper Bollinger Band, met by an oversold read on W%R, we got our selloff. It happened at the beginning of November�— and it happened again just yesterday. While we weren’t expecting such an explosive move so fast, we still caught a 35% gain in less than a day. A typical trade usually lasts up to a month — at most. Here’s the trick to the R-4 Trigger System Excluding the news-driven strategy, focus on three things for today: Bollinger Bands, candlesticks, and Williams % Range. I rattled some of these terms off earlier; if your head was spinning, fear not. For those of you that aren’t familiar with the terms doji, Bollinger Band and W%R, here’s a quick tutorial: Dojis usually appear at times of market indecision and have called key reversals in indices and individual stocks. W%R (or Williams % Range) is the ultimate momentum indicator that signals oversold and overbought conditions. W%R shows an overbought condition with a numerical range read of 0% …