[email protected] © 2004 by Rettmer Trading Trust Trinity - An Approach to Trading Shares Udo Stegen © 2004 by Rettmer Trading Trust.

[email protected]@smartchat.net.au© 2004 by Rettmer Trading Trust© 2004 by Rettmer Trading Trust

Trinity - An Approach to Trading Shares

Udo StegenUdo Stegen

© 2004 by Rettmer Trading Trust


Trinity - What Does It Do?

Identifies possible change of trendIdentifies possible change of trend Suggests entrySuggests entry Suggests exitSuggests exit No guarantee, only probabilitiesNo guarantee, only probabilities Determine “DNA” of a stockDetermine “DNA” of a stock


Trinity - What’s in it for ME?

Chart templatesChart templates– DailyDaily, IntraDay, Weekly, IntraDay, Weekly

Three kinds of indicatorsThree kinds of indicators– A/D, Stochastic, MACD/EMAA/D, Stochastic, MACD/EMA

Entry and exit rulesEntry and exit rules– based on stock’s DNAbased on stock’s DNA


Evolution

““KISS” - Keep It Simple, Stupid!KISS” - Keep It Simple, Stupid! Find a turning pointFind a turning point It’s easy on the left...It’s easy on the left...


Anything else I need to know?

SMLC: Share Market Life CycleSMLC: Share Market Life Cycle– get Warren’s videoget Warren’s video

Trends, Charts, Market DepthTrends, Charts, Market Depth– Market Analyser (upgrade to Pro)Market Analyser (upgrade to Pro)

Study your stocks (DNA)Study your stocks (DNA)


Agenda

SMLC stages SMLC stages (5 minutes)(5 minutes)

Trinity Indicators Trinity Indicators (15 minutes)(15 minutes)

Long trades Long trades (15 minutes)(15 minutes)

Short trades Short trades (15 minutes)(15 minutes)

Scans and Charts in MA Pro Scans and Charts in MA Pro (15 minutes)(15 minutes)

Break Break (10 minutes)(10 minutes)

Q & A Q & A (15 minutes)(15 minutes)


SMLC Stages

What does a share price do?What does a share price do?– it falls (Stage 1)it falls (Stage 1)– it moves sideways (Stage 2)it moves sideways (Stage 2)– it rises (Stage 3)it rises (Stage 3)– it moves sideways (Stage 4)it moves sideways (Stage 4)

This happens on any time scaleThis happens on any time scale


Weekly Chart


IntraDay Chart


Daily Chart


Trading between TP34s


When do TPs Lock In?


Indicator Classes

Volume-Price combinationVolume-Price combination– Accumulation, DistributionAccumulation, Distribution

Momentum, i.e. strength of price changeMomentum, i.e. strength of price change– Stochastic, Rate of ChangeStochastic, Rate of Change

History AveragesHistory Averages– MACD, EMAMACD, EMA


Turning Predicted


Turning Confirmed


A Strong Trend


Long Trades

Accu: Stock is downAccu: Stock is down Volume: Interest coming inVolume: Interest coming in Stochastic: predictsStochastic: predicts MACD crosses Signal: Attention!MACD crosses Signal: Attention! MACD crosses Zero: We’re away!MACD crosses Zero: We’re away!


RIO – Textbook Long


Testing our Patience


Not a strong Entry


Support/Resistance

Four Major LevelsFour Major Levels1.1. Last Low before TurnLast Low before Turn

2.2. Close on day before TurnClose on day before Turn

3.3. Low on day after TurnLow on day after Turn

4.4. FTFF LevelFTFF Level


Example Key Levels


Example EMA Levels


Example Fibonacci Levels


Short Trading

Approach: Mirror LongApproach: Mirror Long– D34 instead of A34D34 instead of A34– Stochastic falls below 80%Stochastic falls below 80%– MACD falls through Signal and zeroMACD falls through Signal and zero

Caution: Be aware that -Caution: Be aware that -– Stocks fall faster than they riseStocks fall faster than they rise– Optimists may start buying earlyOptimists may start buying early– False support signals when bids are pulledFalse support signals when bids are pulled


Example: CSL Jan 2002


CSL: The BIG Picture


Analyser Scans

MA Pro is fast nearing completionMA Pro is fast nearing completion Users can write Personal ScansUsers can write Personal Scans

(or subscribe to extensions supplied by others)(or subscribe to extensions supplied by others)

Scans can be added as Chart IndicatorsScans can be added as Chart Indicators Indicators can build Trading SystemsIndicators can build Trading Systems Trading Systems can be back-testedTrading Systems can be back-tested


Trinity Scans

Result of 7/07/2004 (Long)Result of 7/07/2004 (Long)– CEP.AX– CENTRO PROPS – $4.23– Trinity-L.Classic suggests Long:

A34 and S OK 2 days ago. MACD x zero on the last day. Current Close EMA all up; line-up HALF ok ** *** Av.Volume DOWN


Trinity Scans

Result of 7/07/2004 (Short)Result of 7/07/2004 (Short)– PBG.AX– PACIFIC BRANDS – $2.70– Trinity-S.Classic suggests Short: D55 and S OK

1 day ago. MACD x Signal on the last day. Current Close EMA 1 *UP*; line-up NOT OK *** Turnover < 80% ***


Trinity Scan – CEP Long


Trinity Scan – PBG Short


Trinity as Chart Indicator


Trinity Chart for ANZ


Trinity Chart for WES


Summary You learned -You learned -

– to identify a stock’s SMLC Stageto identify a stock’s SMLC Stage– to interpret a Chart with templatesto interpret a Chart with templates– to check a stock’s DNAto check a stock’s DNA

You can adapt TrinityYou can adapt Trinity– to your favourite stocksto your favourite stocks– to your own trading styleto your own trading style

Don’t forget Money Management!Don’t forget Money Management!


Acknowledgement, Sources

Members ForumMembers ForumSearch for Trinity; Search for Trinity; how much time do you have?how much time do you have?

Education SectionEducation SectionTechnical Indicators; Technical Indicators; check out Stochastic and MACDcheck out Stochastic and MACD

Fellow Traders and Group membersFellow Traders and Group members

AArthur, rthur, BBart, art, CCool Hippo, ool Hippo, DDavid, ... avid, ... WWarrenarren

[email protected] © 2004 by Rettmer Trading Trust Trinity - An Approach to Trading Shares Udo Stegen © 2004 by Rettmer Trading Trust.

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