Linda Bradford Raschke’s Holy Grail Strategy: Twitter: @prodigaltrader Telegram: Prodigaltrader

LINDA BRADFORD RASCHKE’s Holy Grail Strategy Twitter: @ProdigalTrader Telegram: prodigaltrader Holy Grail Pattern Buy rules (sells are reversed) 1. The 14-period ADX must initially be greater than 30 and rising 2. Price which is in uptrend retraces to SMA 20 3. When the price touches SMA 20, put a buy stop above the high of the previous bar 4. Once filled, enter a protective sell stop at the newly formed swing low. Trail stops as profits grow

This is the original strategy. Here it uses ADX indicator for the trend strength confirmation. As u can see there is a strong uptrend period was there much before the signal has actually appeared. We missed out a long chunk of the trend waiting for ADX to cross abv 30.

Lets look at another chart.

Once again the story repeats. We miss out a major portion of the uptrend. Can we address that issue in any way? Definitely yes. But if we need to get early into the trend, we cannot use a lagging indicator like ADX. Being more of a price-volume trader, I would suggest to assess the trend strength based on Price and Volume itself.

Stregth in uptrend can be determined as follows Price makes major Higher High before retracing back to SMA20 In the uptrend ther contains strong gap ups and high momentum bullish candles Strong increase in volume since the latest bottom before the start of the uptrend

Complete credit goes to to Linda Raschke for devising this strategy. Its just a modification of the available strategy presented here.

Twitter: @ProdigalTrader Telegram: prodigaltrader