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Chapter 11. A day trader's secrets > The trend reversal day trading system

The trend reversal day trading system

There are many wrong and fewer right ways to day trade profitably. The right ways come in different styles, and each trader has to discover his own style. Here, I present just one method that has worked for me. It combines two simple, yet effective and well-known, indicators: the RSI and the simple moving average.

For the record, I am a trend follower. In other words, I do not try to pick tops or bottoms, because I personally have found this just too hard to do. I would rather let the trend work for me and find it easier to target a piece of the middle. Remember what I said previously about not having a bias. This is particularly important when day trading. When using this method, you are interested only in exploiting the trend for that day; the major trend is irrelevant. A requirement is a volatile, high-volume market. You need to use discretion and best judgment to exploit the trending days and strive to remain on the sidelines during choppy, low-volume days.


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