"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

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UNO, DOS, TRES
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.