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Trading Education / The Strategic Trader / Basic Trading Strategies

A.	Find a trending market that has a major pullback in progress.
B.	Buy the extreme price swing at the lower outer linear regression channel.
C.	Place an appropriate trailing stop below the lowest price bar spike at the lower channel. (The reward potential for the risk taken should be 1.6 or greater.)

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A.	Make the linear regression median line your first target.
B.	Make the upper channel line a secondary target if the price trades through the median line.
C.	Maintain an appropriate trailing stop for your position.
D.	Once your initial target is met, tighten your trailing stop.
E.	If the price continues through the median line and approaches the upper regression channel line, prepare to close that position out; it has exceeded expectations.

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Disclaimer: The strategies are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness. Nor is it guaranteed that using them will result in profits or that they will not result in losses. Past performance is not a guarantee of future results. Only risk capital should be invested in the market. All investments and trades carry risk, and all trading decisions of an individual remain the responsibility of that individual.


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