Start trading with the "U-Turn" method...

Hey there - happy Friday - it's me, Roger... I wanted to show you one of my favorite trend strategies that you can start applying ASAP.

I'm always on a look out for simple strategies that my students can apply to trading with short term price patterns and indicators.

One of the easiest patterns to learn and one of the first ones I teach traders is the U turn strategy.

The reason I call the strategy U turn is because it's a very fast reversal pattern that works wonders with volatile stocks, futures, currencies and commodities.

The U Turn pattern is a short 1 day reversal away from the main trend. When the pattern is setting up it looks like the market is suddenly breaking out in the opposite direction from the trend.

However, as the day continues the market quickly changes direction and closes back in line with the main trend.

You can see in this example how the stock gaps down against the trend and appears to be heading down.

As the day continues buyers come into the market who notice that the stock is substantially lower than its fair value and momentum going in the direction of the trend soon follows.

This is a very short term trade that's designed to take advantage of stocks and other markets that are temporarily out of balance.

You need to move quickly when you see this type of pattern because they don't last very long. Make sure the breakaway gap day closes near the upper 20 percent of the trading day.

You want to make sure momentum is coming into the market the day before your entry.

Continue reading...

Enjoy. Roger @ WealthPress.

P.S. want to see my favorite way to use the U-Turn? Click here and I'll show the portfolio strategy.

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