Climb, Spike and Shift (Day Trading Technique)

This is a Trading technique which i developed on the basis of my observation of price movements in the past few years.

The success rate is mouthwatering enough to make me use it again and again.

I call this technique

"Climb, Shift and Spike"

A gradual slow rise (22degree)in the price graph is a "climb".

A sharp rise is a "spike" (45 degree or more)

A very sharp (almost vertical) rise is a "shift"

All shifts and climbs are solid and sustainable, whereas all spikes are unsustainable "bluffs" and are generally reversed till the rise is a climb.

The reason behind spikes is liquidity or sentiment or puntering and hence unsustainable. Gradually, the steam runs out.

On the contrary, the reason behind climbs and shifts is fundamental and hence sustainable.

So, all spikes (not shifts or climbs) can be shorted when the graph has gone "too far".

The exact entry point is a matter of judgement and can be mastered with practice.

RSI or some other technicals can also help you identify the preferred entry point.

The only thing to be taken care of is that entry point has to be at the point when the graph has gone too far in the bluff, and not when the bluff has just started.

The exit point should be the time when the spike becomes a climb.