BASIC GUIDE

A friend asked me how to know that a rebound has taken place / waiting for a rebound to the 13 charts that I posted on 9th July. This friend has asked me many times how to read my charts and I have also explained to her so to make it simple, just look at the following:-
1. The system bar at the bottom of the chart.
2. The histogram on the prices itself
3. The confirmation on the two panels below the price panel
A stock that is trending up may pull back or it may reverse.

They say that backtesting is not accurate but you must know why it may not be 100% true. Sometimes, when the prices are moving sideways, there will be many small winners and losers and finally the stock may move up a lot so that’s when you get your big winner to make up for all the small losses. Another point is that if the system is not successful in the past, it can never be successful in the future.
Please remember that not all trades are profitable as show in the table attached. You may have more losers than winners but if the winners are much bigger than the losers (sticking to your cutloss plans), then it will be profitable ultimately.
They say there is no free lunch. Guess you have to make an effort to study the charts. There are so many information in them to suit individual preferences.