Greg Secker – U.K. Market update brought to you by Traders University

What are you trying to achieve with a Power Play?

• You are looking for a pivot in a share’s movement.
• Ideally you want to catch the point at which a retracement turns and the main trend continues.
• You need to apply the Power Play Basic Rules.
• You also need to use some filtering rules on other indicators and signs to confirm the validity of the Power Play.
• You also need to use your common sense and judgement.

Power Play Terminology

Day 1. The day used to define the Activator Day

Day 2. ‘Activator Day’ – The day used to define the entry and stop levels

Day 3. ‘Trigger Day’ – The day you potentially enter the trade.

Day 4+. Days during which the trade is potentially open.

Checklist

1. Two down days in a row is a must.

2. On the activator day the volume must be above the 25 day average line

3. Stock must be in an uptrend and above both it’s moving averages

4. Ideally the activator will be bouncing off MA, tend line or a support line.

5. Active sector that is also performing well.

6. Small ranging activator bar.

7. Risk/Reward mist be at least 3:1.

8. Check that indicators aren’t at their extremes.

9. Ideally the fundamentals will be good.

And finally…..

• For reverse Power Plays all the rules are the same as before but they are flipped upside down.
• A useful exercise is to write down these rules and incorporate them into your Trading Plan, both for the long and short Power Plays .
• Do your own research and see if there are any other factors that you think will help you sort out the very best opportunities.
• Keep a logical, clear head when trading this strategy – it is simple, but do not rely on the simplicity too much.