"Swing Trading With Three Indicators" by Donald Prendergast

Hello folks today I want to show u system of Donald Prendergast that was explained in in the December 2013 Stocks and Commodities article


The daily chart of Citigroup © in Figure 1 shows the three-indicator trading template; this was created using three standard indicators in TradeStation 9.1 (see Figure 2):
A 50-day exponential moving average (EMA; blue line)
A five-day simple moving average of the daily highs (SMA; gold line)
A five-day simple moving average of the daily lows (SMA; red line)

The trading logic is very simple:

Long entry:
Go long when price exceeds the upper (gold) moving average of the daily highs by five ticks (0.05) and the price bar prior to the break of the upper moving average has closed above the blue 50-day EMA. Aggressive traders can use the low of the entry bar as the initial stop, but this will sometimes result in premature stop-outs and will entail extra commissions and effort; newer traders should just use the red line as the initial/trailing stop to keep things simple.

Short entry:
The rules for short entry are simply the inverse of the long entry setup.


The system looks amazing and even the logic used here is simple.

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And did you give this thing a go?

I wonder if you could get this working on tradingview…

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Im having it working on NT8 also I can add many more factors pls contact me if u have interest thx

yes its looks amazing but need to be modified in order to start making money

and how does your modification look like?

I have lots of strategies and can build this strategy too if u want to start trading algo’s u can send me message thx

Do you have any backtest of this system?

yes I have also its possible to add more factors on top of it

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Can you show them? :slight_smile:

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Yes I can show but u know same as me that is not ideal strategy and its need to be modified all the time as is can lose money too:) :wink: but if u work on it u can add more factors pls send me direct message I can give it to u for free :heavy_check_mark:

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Thannx I trade moving averages since 2015 :smiley:

This strategy is simple and makes a lot of sense.
The point is that for every 100 strategies like this there is one that have a predictive power and make pips forward.

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:grin: yeap personally Im not using it its just for information :wink:

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It looks interesting, I even read a detailed article about it to understand all the details, I like to learn something new and I immediately try to try it out in practice so as not to waste time and perhaps find something useful for my daily work.

Its simple strategy best to add more factors on top :top: of it :+1:

Oh, well, in fact, all these strategies, approaches are so similar to each other that before I thought it was possible to take any strategy and that would be enough.
But only when I started working actively, I realized how many nuances there are and you can’t always deal with new information exactly.

of course the problem with simple strategies that they are too simple to be effective!!! so u need to lots of factors on top of it!

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You are using the right logic. I use MT4 and wonder if it will work this well for me also or not.

its a very simple strategy and I have it on NT8 can give it for free if u need it

The classic approach, suitable for short and medium term positions, does not require any extremely complex settings. I like the way it looks!

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