Stock Strategies.

Courtesy of Kourish. For Baba.

 Indicators.
Courtesy of Kourish. For Baba.
The Bounce Strategy

A short term trading strategy that seeks to buy high momentum stocks as
they bounce off key moving averages during temporary corrections on a
confirmed uptrend. Conversely, we sell short weak momentum stocks as they
bounce off key moving averages during temporary rallies on a confirmed
downtrend. The idea is to enter a trend during a corrective pullback in
anticipation of the dominant trend to continue. We aim to exit the trade before
the next corrective pullback, in order to capture a favourable risk/reward ratio
of 1:2.
Candle Patterns you need to know for this strategy.
2-Candle Reversal & Confirmation Pattern

• Reversal candle is a candle whereby the body of the candle is ABOVE EMA support and the

shadow of the candle extends below EMA support AND also below the low of the previous

candle.

• The reversal candle is followed by a confirmation candle. The confirmation candle is a bullish

candle that must make a HIGHER LOW than the low of the reversal candle and CLOSE HIGHER

than the high of the reversal candle.