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Diesel Strategy

In a diesel engine the fuel is heated and injected into the combustion chamber, where it is compressed by the rising piston. This causes the fuel to explode - and that’s exactly how the Diesel Strategy works.

Sometimes, the price of a stock runs up quickly and pauses for a few days, as it trends sidewards. The price bars start to compress and the stock begins to heat up. Eventually, the sell orders at the current price level are absorbed and trading volume declines. Finally, the price drops and washes out the few remaining sellers, before it reverses again like a rising piston and the price explodes upwards as volume returns.

Trend Following Strategy

Weekly Trend Following is widely considered to be the most profitable style of trading. Technically it's an easy style to learn, but it can be the most challenging because traders lack the necessary patience.

Trend Following is particularly suited to beginners, as there is enough action to make things interesting and open orders need only be adjusted on the weekends. This allows us to get away from the screen and concentrate on our day job. To trade this style, we need to understand the basic rules of trend structure and patiently wait for each weekly bar (or candle) to form without jumping in or anticipating where it might go.
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Tidal Strategy

This is a 'semi-passive' strategy, where the trick is to be passive when the market is trending and active when it’s turning. We must be able to sit tight in our chosen ETF for years and not be spooked by every bit of negative news. On the other hand, we have to be prepared to close a position we've held for ages without getting too attached to it.

The Tidal Strategy is traded with a monthly chart, so it's really a form of 'technical investing'. Our entry and exit decisions are based on clearly defined signals, rather than company financials or macro-economics. Institutions and large money managers tend to use strategies like this.

Wilde Strategy

One of my favorite strategies was inspired by a line from Oscar Wilde, ‘We are all in the gutter but some of us are looking at the stars.’ It's a weekly trend following strategy where we are looking for high flying stocks who have fallen out of favor and ended up in the gutter.

As the management (or what’s left of them) go about the job of restructuring, the share price finds a bottom and begins to form a base. Over time, resistance and support levels define the width of the gutter. If the firm can be restructured, eventually the stock will burst out of the gutter and reach for the stars. That's when the Wilde Strategy kicks in.
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Gutter Strategy

While waiting for a Wilde trade to set up, the gutter provides many profitable trading opportunities. As the price rattles back and forth, the Gutter Strategy seeks to grab a few bucks using a daily swing trade.

A washout of the upper and lower zones of the gutter are the best places to catch these trades, but internal support/resistance levels are also good. The beauty of the gutter is to be found in the clearly defined levels which need to be washed out for a set-up to be valid - our stops and targets are obvious. The longer the gutter persists, the more pronounced the levels become and the greater the opportunity to profit from them.

Content is provided for information and education only and is not a recommendation to trade. Trading is not suitable for everyone and involves the risk of losing money. Past performance is not a reliable guide to future returns. Please read the Trading Disclaimer.

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