Last updated: 20240328
This simple yet effective trading strategy aims to capture the movement out of a contraction area into an expansion area.
Trading strategy components
Although classed as a “simple” trading strategy, Davin shows how this covers many critical aspects of trading including:
- Risk and trade management;
- Shows areas to exit the market into potential counter-trend moves;
- Trade with the overall direction of the market;
- Strategy with potential reward greater than 1:1 This is a key consideration, as many traders focus only on a strategies win rate/accuracy however it is essential to view this figure in conjunction with risk/reward; and
- Allows us to be consistent in our application.
Technical indicators and chart type used
The chart type Davin uses in the video is the Renko chart or “Better Renko” bars.
Indicators used in the presentation include the:
- GTT TMR Signals and GTT TMR Momentum indicators,
- plus the GTT Ultimate Moving Average Cross alert indicator.
About Davin Clarke
Davin Clarke has over 20 years experience trading as a full time professional. He has extensive experience in trading shares, futures, options and foreign exchange markets both in Australia and other worldwide markets. He has developed a keen insight into market structure and understanding of market dynamics.
Davin is a popular and sought after speaker throughout Australia and is featured in a number of books including The Wiley Trading Guide published by John Wiley & Sons, 20 Most Common Trading Mistakes and How You Can Avoid Them published by Wrightbooks and, Real Traders, Real Lives, Real Money published by Wrightbooks.
Davin Clarke has also co-authored his own books:
“Options Made Simple: A Beginner’s Guide to Trading Options for Success” published by John Wiley & Sons; and
“Trading Plans Made Simple: A Beginner’s Guide to Planning for Trading Success” also published by John Wiley & Sons.
If you would like any information please contact us via the contact form.
Thank you and good trading.
Davin
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