What is the Holy Grail trading system?

The holy grail is a system or strategy with clear rules that works well enough to ensure effortless trading which is profitable overall . Very often such a system is seemingly found, only for it to fail later, at which point the grail quest must begin again.

What is the holy grail swing trading strategy?

The Holy Grail Setup is a trading technique that uses strongly trending (in this case bullish) stocks, that first pullback to their 20 Day Exponential Moving Average, losing the moving average intra-day and then reclaiming and closing back above that moving average in the same day!

What is the 3 10 oscillator strategy?

The LBR 3-10 Oscillator is a technical analysis tool that uses two moving averages (3-period and 10-period) to identify potential market trends and reversals . Traders watch for crossover points and divergences between the oscillator line and the price chart to signal buying or selling opportunities.

Is the Holy Grail legit?

The Holy Grail – the sacred cup Jesus drank from at the Last Supper – is one of the most well-known symbols in Christianity. It's also one of the religion's greatest sources of myth and mystery. Yet despite the Grail's fame, no one is entirely sure where it is or whether it ever existed .

What is the most profitable swing trading strategy?

As far as patterns are concerned, the ascending and descending triangles are considered to be the best. The top swing trading strategies are Fibonacci Retracement, Trend Trading, Reversal Trading, Breakout Strategy and Simple Moving Averages.

What is the Merlin trading strategy?

How Merlin trades. Merlin is a long-only algorithm that buys pullbacks within uptrends during healthy market environments . Merlin primarily trades liquid but lesser-known small and mid-cap stocks as well as a basket of popular index and sector ETFs. All signals are generated using daily prices after the market closes.

What is the best oscillator combination?

The best pairing is to combine the Awesome Oscillator with the Stochastic Oscillator . The two are complimentary and will confirm changes in momentum. Other good combinations are with the Relative Strength Index (RSI) or with the Moving Average Convergence/Divergence (MACD).

Which oscillator is best for trading?

Relative strength index (RSI), moving average convergence divergence (MACD) and the stochastic oscillator are among the most popular oscillators that traders favor.

What is the ultimate oscillator setting?

The Ultimate Oscillator is a technical indicator that focuses on three timeframes: seven, 14, and 28 periods . It has less volatility and fewer trade signals because it doesn't rely on a single timeframe. It uses the weighted average of all three. The 28 period carries the least weight.

What does Holy Grail mean in stock market?

In economics and finance, a holy grail distribution is a probability distribution with positive mean and right fat tail — a returns profile of a hypothetical investment vehicle that produces small returns centered on zero and occasionally exhibits outsized positive returns.

What does Holy Grail company do?

Holy Grail: We capture CO2 from the atmosphere and store it above ground | Y Combinator.

What does the Holy Grail mean business?

In the business world, the term "Holy Grail" is often used to refer to the ultimate goal of any company: to achieve success and innovation .

What is the grail movement?

The Grail Movement is a new spiritual movement dedicated to the dissemination and spread of the work In the Light of Truth: The Grail Message by Abd-ru-shin . Most members reside in 16 countries across Europe, primarily Germany and France, with the Grail Movement reporting hundreds of members in Britain and in the USA.

The Holy Grail Trading Setup (2024)

By Galen Woods&dash;3min read

The Holy Grail is a trading setup that makes use of the ADX indicator to identify strong trends before trading a pullback to the moving average.

The Holy Grail is, of course, not the Holy Grail. Linda Bradford Raschke and Larry Connors named it so for its simplicity. As both of them are prominent traders, this trading strategy is hugely popular.

ADX Lovers: Day Trading, Range Trading

Trading Rules For The Holy Grail

Rules For Long

14-period ADX is initially above 30 and rising
Prices retrace down to 20-period simple moving average (SMA)
Place buy order at the high of the bar that touches 20-period SMA

Rules For Short

14-period ADX is initially above 30 and rising
Prices retrace up to 20-period SMA
Place sell order at the low of the bar that touches 20-period SMA

The Holy Grail Trading Examples

Winning Trade - Bullish

This is a daily chart of Hewlett-Packard (HPQ on NYSE). The bottom panel shows the ADX rising above 30. ADX measures trend, so this criterion finds markets that are trending strongly.

In this trending stock, we saw a pullback to the 20-period SMA. We entered at the high of the bar that touches the SMA. The trend continued beyond this chart and gave a profit potential of around $9.00 per share.

The ADX only served to confirm what prices showed. The series of 13 bullish bars was all that any trader needed to see the upward trend. The marked bar offers a great entry point as the day gapped down before rebounding up within the day. An extremely bullish sign.

Losing Trade - Bullish

This is a daily chart of EUR/USD spot forex.

Again, the ADX rose above 30 to show a strong bullish trend. Then, prices retraced to the 20-period SMA to present a Holy Grail long setup. We entered on the high of a bullish reversal bar. However, the market hit our stop two days later.

This entry looked good with a nice bullish reversal bar as the signal bar. Moreover, it looked like a possible failed downside breakout of the trading range at the top.

However, the increasing number of dojis showed a lack of buying pressure before the pullback. Also, before the marked reversal bar, there was a bearish outside bar. After entering the trade, the entry bar became a doji which was a signal for more conservative and nimble traders to exit earlier to limit their losses.

Review - The Holy Grail Trading Setup

The Holy Grail trading strategy finds retracements within healthy trends. You don’t need the ADX to see strong trends, as they are hardly subtle. However, the ADX keeps new traders out of trouble and provides a convenient way to scan for trending stocks.

With regards to finding trends, the criterion of ADX > 30 has two drawbacks. First, a high ADX can mean that the trend is overdone and may reverse soon. Traders might enter at the worst possible timing. Second, gradual and protracted trends may unfold entirely without the ADX ever crossing above 30. This will result in missing some trades.

Street Smarts: High Probability Short-Term Trading Strategies explains how to re-enter a trade and to look for a second retracement. The book is an excellent read as the authors explain the concepts underlying each trading strategy very clearly.

If you like the ADX indicator, check out these articles for a unique way to use this powerful indicator.

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