This trend following system was designed by Dennis Gartman and Bill Eckhart , and relies on breakouts of historical highs and lows to take and close trades: it is the complete opposite to the "buy low and sell high" approach. This trend following system was taught to a group of average and normal individuals, and almost everyone turned into a profitable trader.
The main rule is "Trade an N-day breakout and take profits when an M-day high or low is breached (N must me above M)" . Examples:
- Buy a 10-day breakout and close the trade when price action reaches a 5-day low.
- Go short a 20-day breakout and close the trade when price action reaches a 10-day high.
In this indicator, the red and blue lines are the trading lines, and the dotted line is the exit line. Original system is:
- Go long when the trading line turns blue
- Go short when the trading line turns red
- Exit long positions when the price touches the exit line
- Exit short positions when the price touches the exit line
Inputs:
- Display Alerts: to display Buy and Sell signals on pop up
- Send Notifications: to send notifications to your phone
