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Trend Analsis and operation of CandleSticks___ZhangGe's Trend Lever Principle
HELLO,
Everyone, I have a gift for you here, ZhangGe’s Trend Lever Principle, which has a accuracy of more than 70% . We all know the 2-days Rule or the price filtrate rule when the trendline is broken, but you may still get confused that both of them don’t give you the details like the entry, SL, target, or the most crital, accuracy.
When the trendline is broken, ZhangGe’s Trend Lever Principle is an very effective method to tell you how strong the force of the market is, whether the market has reversed, whether to enter the market, how far the price will go and where the target is. Further more, this Principle is build on no indicators, use the most effective tools: candlesticks and trendlines.
I give the RULES as following, let’s take a top ZhangGe’s Trend Lever
ZhangGe’s Trend Lever Principle RULES:
1.a up trend line is broken
2.find two bull candlesticks at top, mark them as A and B, but the close price of B must be higher than A
3.find the bear candlestick at top with the highest open price , mark it as E
3.fine a bear candlestick cross the open price of A, mark it as F
4.allow some candlesticks between A and B ,B and E, E and F，but we have some complex rule here, and in that condition, and this will be a complex lever, I will tell you later if you are interested.
ENTTY:
The candle stick after F, and I suggest the pullback to the up trendline or to the 5 days’ SMA, or the middle of F is a good opportunity.
Stop Loss:
The highest price of the up trend, usually the high price of B or E, here in the example of the graph above ,it is the high price of E
Targets:
We have several targets here. We compute the space between the open price of A and close price B as our 1 time target space , also the price may go for several spaces . In the graph above, Space1= Space 2= Space 3, and our target is Target 1,Target 2…… ,and so on.
I have make a video and upload to Yoube, you can find it here:
http://www.youtube.com/watch?v=6-g67Kf5sH8
Above is the simple description of ZhangGe’s Trend Lever Principle，and I am benefit a lot from it. It make me understand the market better. Spend some time on it and I believe it will help you a lot.
Combined with Elliot wave theory, ZhangGe’s Trend Lever Principle will behave better, however, it is another complicated topic, and I want to reserve until you are interested.
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