A Trading Method For The Long Haul by Donald W. Pendergast Jr.
You can apply this model to any time frame on any equity. The best part is that its so simple, anyone can implement it.
Sometimes even a picture-perfect trade setup fails to deliver profits and may even result in a loss. But when you see a convergence of daily chart price dynamics like the one Ill demonstrate here, the case for a long trade becomes fairly compelling. In Figure 1, you get a closer look at an interesting and attractive long swing entry setup in UGI Corp. (UGI).
If you are a new or struggling trader and still need help in sorting out your ideal trading strategy, consider whether this kind of trading model makes sense to you:
1. You only take long positions when the dominant long-term trend is up as defined by a 200-period exponential moving average (EMA).
2. You take long positions only when they have completed a proportional pullback/correction against the dominant long-term trend.
3. You only take long positions in stocks that have recently beat their quarterly earnings estimates and/or have a steady trend of earnings growth and positive earnings surprises.