Holy Grail

by: Bill Zimmer Tuesday, February 9th, 2010 at 10:19 am

In her book “Street Smarts“, Linda Raschke covers a setup called The HOLY GRAIL: A trade set-up based on a pullback to the 20 period EMA after the 14 period ADX has risen above 30. Pullback in rallies are bought, and pullbacks in declines are sold short. A little more detail is discussed in an Active Trader Interview [.pdf format].

Linda Bradford Raschke is President of LBRGroup, Inc., a registered CTA and money management firm and president of LBR Asset Management, a CPO. She began her professional trading career in 1981 as a market maker in equity options. In addition to running LBRGroup’s CTA program, she is the principal trader for the Granat Fund. [Read More]

The PrudentTrader Screens for this setup each evening against our database of optionable stocks — to give you the option (pun intended). Last evening only two stocks fit this criteria, here’s one chart:

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