|When I was shown the JM strategy in 1986, the person who showed it to me told me that the strategy had been very kind to him over the years. Since then, I have used it for investing -- not daytrading -- and I must say, the strategy has been very kind to me. My profits have not been stratospheric, but they have been above average. Figure 1 is an example of how to use the strategy on Entercom Communications (ETM).|
|FIGURE 1: ENTERCOM, DAILY|
|Graphic provided by: AdvancedGET.|
|Figure 1 is a candlestick chart of ETM with the JM internal band (blue band) drawn over it. The parameters to draw the band are simple. It is a simple 15-day moving average offset by 2% positive and 2% negative. To close a position, we would use a simple 15-period moving average, as shown, or a trailing stop of your own choosing. I have shown a 15-period simple moving average (thin red line). Do note how the relative strength index (RSI) (12 period) has confirmed all the buy and sell signals.|
The JM strategy deserves a place in our trading quiver. Keep it there, and practice using it.
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|Phone # for sales:||6042634214|
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