{"product_id":"v20134fourli","title":"V. 20:1 (34-42): The Four Lines Trading System by Viktor Likhovidov","description":"The Four Lines Trading System by Viktor Likhovidov\u003cbr\u003e\u003cbr\u003eHeres a simple, reliable, universal system for\ntrading the markets.\u003cbr\u003e\u003cbr\u003eThe creation of a personal trading\nsystem requires a personal\nunderstanding of the nature of the\nmarkets and the peculiarities of\nmarket behavior. Its also critical for\nyou to have a simple yet universal\nand reliable strategy from the beginning. One\nstrategy I particularly like is based on a single\nindicator and includes simple but powerful statistical\nprocedures for constructing reference lines that\ngenerate trading signals.\u003cbr\u003e\u003cbr\u003eTHE FOUR LINES\u003cbr\u003e\u003cbr\u003eWhen you are using the relative strength index (RSI)\n as well as many other oscillators in trading,\nthe rule of thumb is to sell when RSI leaves the\noverbought area and buy when it leaves the oversold\narea. The market is usually considered overbought\nwhen RSI is higher than 70 and oversold when RSI\nis lower than 30. But a practical application shows\nthese generated trading signals are not reliable.\nAfter the overbought\/oversold levels are broken,\nthe chart frequently goes in the opposite direction,\nresulting in too large a percentage of losing positions.\n(For details on the RSI oscillator, see sidebar RSI\noscillator and its main properties.)\u003cbr\u003e\u003cbr\u003eUsually, additional indicators are introduced in\norder to improve an RSI-based trading system. (That\ndoesnt necessarily mean the system becomes more\nefficient, but it does become more complex.) It is\npossible, and much easier, to test and analyze a\ntrading plan based on a single indicator.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133969559921,"sku":"\\V20\\C01\\007FOUR.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_0b0d377d-6bdf-4b93-b30a-edb5b45355e1.jpg?v=1739659461","url":"https:\/\/shop.traders.com\/products\/v20134fourli","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}