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SPA3 Investor

Medium Term Strategies for

Stage 2 & 3 Investors

Getting Started Manual Share Wealth Systems November 2020 First Edition, Version 3

Copyright Share Wealth Systems 2020 Page 2 of 35

Copyright Notice

This document is provided for use by individuals who have purchased SPA3 Investor from Share Wealth

Systems Pty Ltd, or any other authorised re-seller. It is protected by copyright law. The SPA3 Investor

Module in Beyond Charts is the property of Share Wealth Systems and is protected by copyright law.

Unauthorised reproduction, distribution or use of the SPA Investor Module software, this document, or

any portion of it, may result in civil or criminal liability.

Share Wealth Systems will prosecute and defend its copyrights to the fullest extent of the law.

Copyright Systems 1998-2020

All Rights Reserved.

First Edition, Version 2 June 2020

First Edition, Version 3 November 2020 (Includes Portfolio Manager)

Share Wealth Systems Suite 101, 75 Tulip Street or PO Box 7374 Cheltenham VIC 3192 Beaumaris VIC 3193 Australia Australia

Phone: +61-3-95850300 or Australia only: 1300 stocks (1300 786 257)

Fax: +61-3-95850777

Website: www.sharewealthsystems.com


IMPORTANT NOTICE

Because the information in this publication is general in nature, it may not be relevant to individual

circumstances. Before making any investment or financial planning decisions, you should consult a

professional adviser who can help you decide whether your decision is appropriate for you.

Share Wealth Systems believes the information provided in this publication is correct. However, Share

Wealth Systems, licensed distributors, their directors, employees and agents are not liable for any loss

or damage incurred by any person as a result of any error in any information, opinion or

recommendation (whether due to the negligence of Share Wealth Systems, its directors, employees

and agents, or otherwise). This does not limit any rights a person has under the Trade Practices Act.

Nothing in this publication is, or should be taken as, an offer, invitation or recommendation to buy or

sell any investment.


Table of Contents SPA3 Investor - Methodology ............................................................................................................... 4

Introduction ...................................................................................................................................... 4

The Investing Lifespan ...................................................................................................................... 5

SPA3 Investor in Beyond Charts ............................................................................................................ 6

Scanning with SPA3 Investor ................................................................................................................. 9

SPA3 Investor Equal Weighting Stocks Strategy - Considerations ................................................... 14

Entering New Positions ................................................................................................................... 15

Exiting New Positions ...................................................................................................................... 17

The SPA3 Investor Process .............................................................................................................. 18

SPA3 Investor Portfolio Manager ........................................................................................................ 19

Creating a New Portfolio ................................................................................................................. 19

Brokerage........................................................................................................................................ 21

Starting a SPA3 Investor Equal Weighting Portfolio ............................................................................ 22

Entering a New Buy transaction - PM example ............................................................................... 22

Entering a Sell Transaction – PM Example ...................................................................................... 24

Is the Equal Weighting Strategy right for you? ................................................................................... 26

F.A.Q.’s ................................................................................................................................................ 26

Summary ............................................................................................................................................. 28

Appendix A ....................................................................................................................................... 29

SPA3 Investor Exit Signals ......................................................................................................... 29

SPA3 Investor - Methodology

Introduction

This investing methodology has been researched and developed for investors that fit any one or

combination of the following requirements:

• time-poor, but do have as much time per week as they spend watching a half hour TV sitcom

to manage an investment portfolio,

• have low investing knowledge, even as low as having never read a single financial article in a

daily newspaper,

• have a sophisticated investing knowledge from having spent years investing in the financial

markets,

• have a small amount of investing capital, as low as $20,000,

• have a large amount of investing capital, as high as $5,000,000, or even more,


• aged 18 to 80+.

However, one criterion is required, a desire to want to invest for any one or combination of the

following reasons:

• To achieve peace of mind and security for one’s financial markets investments by ensuring

that capital is removed from the market in time to avoid large bear markets.

• To be empowered and in control of investments through being well organised, structured and

process orientated.

• To have a stress–tested and provable process and edge to achieve growth and dividend

income while markets are rising.

• To be enlightened on how to be smarter and do better than the so-called investing pro’s that

manage mutual / managed funds.

Combining the use of unambiguous market timing, through the science and art of technical analysis

trend-following techniques, and Gary Stone’s knowledge and experience in this area, SPA3 Investor is

an investing strategy that is efficient, low effort, profitable and simple to use.

The philosophy of SPA3 Investor is discussed in Gary’s online course The Blueprint to Wealth Investors

Club located in the Share Wealth Systems Education Centre.

Adding important context for SPA3 Investor users is the recently written Whitepaper, Critical Concepts

for an Investing Lifespan.

It is strongly recommended that all members read this 20-minute Paper before beginning.

The Investing Lifespan

The Investing lifespan is effectively comprised of 3 stages based on age and years to retirement.

Stage 1 is from 18 – 55 years.

Stage 2 is the pre-retirement window from 56-65 years.

Stage 3 is from retirement onwards.

The greatest investing risk facing Stage 2 and 3 investors is that of Sequence of Returns Risk. That is,

experiencing a large bear market on the verge of or in retirement. SPA3 Investor uses timing to reduce

the potential impact of this during these higher risk investing stages.

It is important to note that this Getting Started Manual is for Investors in Stage 2 or 3 primarily.

Investors in Stage 1 should use The Blueprint to Wealth Investors Club to begin with before using this

manual.

This Getting Started Manual explains the how and what to do to achieve improved investing outcomes

from following the SPA3 Investor process using an Equal Weighted stocks-based approach. Full

research is available in the SPA3 Investor Reference Manual.

https://learn.sharewealthsystems.com/courses/enrolled/225662

https://learn.sharewealthsystems.com/courses/enrolled/225662

https://sharewealthsystems.com/operational/ebooks/Investing%20Lifespan/

https://sharewealthsystems.com/operational/ebooks/Investing%20Lifespan/


In its simplest form, executing this system should take no longer than 15 minutes on a weekly basis

once learnt.

SPA3 Investor in Beyond Charts

SPA3 Investor Watch Lists

The latest list of stocks supported by SPA3 Investor is automatically generated and maintained in

Beyond Charts. Updates will be automatically released when they are available through Beyond Charts

providing an updated list.

You can find the Watch Lists through the Watch List Explorer panel on the left-hand side of Beyond

Charts, as shown below.

To see the Watch List panel, click on the Watchlist icon and the Watchlist panel will open.

To dock the Watch List panel so that the panel stays open, click the pin/tack icon.

The Stocks Watch Lists will always be called:

• SWS ASX Stocks for SPA3 Investor

• SWS USA Stocks for SPA3 Investor


Only Stocks for the stock exchange that a user is subscribed to - U.S data and/or ASX data – will be

included in each of these Watch Lists.

To see a list of the stocks in the Watch List, highlight the chosen Watch List and then “right-click” and

choose “data sheet”.


To see a chart of each stock in the Watch List, “double-click” the Watch List and the first stock in the

list will appear on a chart. Alternately, you can “right-click” on the stock name in a data sheet and

choose “chart”

To see the next stock chart, simply click the down arrow on the top right corner of the chart.

To turn on the SPA3 Investor signals so they can be seen on your chart, go to the Chart Tab and then

click on the purple SPA3 Investor icon. (See below)


Scanning with SPA3 Investor

A SPA3 Investor list of stocks can be scanned for entry and exit signals using the Beyond Charts

Scanning engine. This can be done in either of two ways.

1. From the Scans panel on the right-hand side of the Beyond Charts screen.

2. From the Scanning menu on Systems Tab

Scanning from the Scans Panel

To open the Scans panel, move the mouse cursor across to the right side of the screen and select Scan

Profile by clicking on the Scan icon.

Dock the panel so that it stays on screen by clicking the pin / tack icon.

Highlight the SPA3 Investor Equal Weighting Scan by clicking on it.

Run the Scan by clicking the Scan icon.


The default Scan Profile provided with SPA3 Investor is the Equal Weighting scan.

It has been set to scan both the stocks and ETFS that are included in the SWS SPA3 Investor Watch

Lists.

There are 4 Watch Lists included in the scan. Only those Watch Lists that your data covers will be filled,

the others will be empty. For example, if you only have ASX data, then the USA Watch Lists will be

empty and vice-versa.

You can see those Watch Lists included in the scan by clicking on the “Securities” tab.


The Scan is an advanced scan that is looking for both Entry and Exit signals, over the course of the last

5 periods in this case, days. This can be seen by clicking on the “Settings” tab.

The Scan is pre-set and ready to use. Click on the Scan button to start the scan.

Scanning from the Systems Tab

Start by clicking on the “Systems” tab located across the top of Beyond Charts.


Next to the Start Scan icon is a drop-down menu. Click on the drop-down arrow and select the “SPA3

Investor Equal Weighting” scan.

Now click on the “Start Scan” Icon to launch the scan.

The results of the scan will appear once complete.

The results of the scan will be presented in a table.

To view the chart of each stock “double-click” on any one of the rows, and the chart for that stock

will open. You can then scroll through the other charts using the up and down arrow in the top right

corner of each chart.

The Ranking Column

Members can also use a Ranking Column in the Scan results to help prioritize in the case of multiple

entry signals occurring on the one day.


Investors might choose the Stock/s with the Highest Ranking when there are multiple Entry

opportunities, including Signal entries (ATR_BO) and Below Action Price entries (BAP) observed in the

Scan results.

SPA3 Investor Indicators

SPA3 Investor signals and indicators are only available on a select number of stocks in Beyond Charts.

Over time more stocks may be included in the list supported by SPA3 Investor.

There are a number of technical analysis criteria and rules that determine when a stock should be an

open trade and when it should be closed. The rules are unambiguous and mechanical and are

programmed into Beyond Charts so that the investor does not need to determine the technical

analysis criteria and rules manually on a day to day basis.

SPA3 Investor uses Two primary technical analysis techniques:

1. A SPA3 Investor adaptive ATR Trailing Stop

2. Technical Analysis of Price Action Patterns of Swing Charts

The ATR Trailing Stop can be displayed on the charts of the available stocks in SPA3 Investor, along

with entry and exit signals. (see page 13)

The Swing Chart patterns are used to determine exits that can occur before an ATR Trailing Stop exit

occurs. Patterns are programmed into SPA3 Investor to determine an exit. Full details can be found

in the Appendix and also the SPA3 Investor Reference Manual.


SPA3 Investor Equal Weighting Stocks Strategy - Considerations

Capital Allocation:

Use the SWS ASX Stocks for SPA3 Investor Watch List for daily analysis for Australian Portfolios, and

the SWS USA Stocks for SPA3 Investor Watch List for US portfolios.

Divide the cash allocated to this strategy by the number of simultaneous open positions that will be

managed.

For example, if 10 open positions have been chosen then 10% of capital is allocated to each stock. If

8 positions are chosen then 12.5% is allocated, if 12 positions are chosen then 8.5% is allocated to

each position etc.

Number of Stocks:

Extensive research was conducted into the optimal number of stocks in a portfolio and the following

range was found to be most suitable.

ASX: Between 6-10 stocks in a portfolio is generally considered suitable.

USA: Between 9-14 stocks in a portfolio is generally considered suitable.

For further information please see this video from the SPA3 Investor short course.

Portfolios should not include stocks from both markets in the one portfolio, but rather establish 2

discrete portfolios, one for ASX stocks and/or one for US stocks.

https://learn.sharewealthsystems.com/courses/331967/lectures/5090363


Entering New Positions

There are 2 ways of entering new positions.

1. Entry after a Signal

Orders to buy on your brokerage platform should be made as soon as practical after the new buy

signal. Entering a new position at the market open or shortly thereafter is one option, whilst some

members prefer to wait until the market has been open for at least 30 minutes.

There is no right way or wrong way to enter after a signal as long as you commit to purchasing on

that day after the signal has been generated.


2. Entry Below the Action Price

The Action Price is simply a reference point and is the closing price 1 day after the signal, circled

above ($56.22).

The Action Price entry is an alternative entry method for when a member misses a signal or is

looking for further opportunities to buy in the absence of new signals being generated.

Buying a stock below its Action Price often presents a lower risk entry as the price is now closer to

the ATR_TS than the original entry point. (See rectangle area in the chart above)

You can find the Action Price on a Chart in Beyond charts by placing your mouse cursor over the buy

signal, one day after the signal. (Remember the Action Price is unknown until the close one day after

the buy signal)

Alternatively, you can find the Action Price listed one day after the signal is generated in the Status

screen in the Share Wealth Systems App.

You may enter at any time when the price of the stock is below its Action Price AND is an open

position.

Orders to buy on your brokerage platform should be made as soon as practical.

Entering a new position at the market open or shortly thereafter is one option, whilst some

members prefer to wait until the market has been open for at least 30 minutes.


Exiting New Positions

Orders to sell after a sell signal has been generated should be made as soon as possible after the

market has opened the following day. (See circled below)

For example, a sell signal generated after the market close on a Friday should be acted upon on the

following Monday morning.

Note: Failing to act upon either entry or exit signals is a breach of the rules-based investing

mechanical methodology of SPA3 Investor.


The SPA3 Investor Process

1. When there are no open trades in any of the stocks, Scans should be run on a daily basis for

an entry signal. Alternatively, the Share Wealth Systems Alerts App can be used.

For instructions on how to download and use the App please watch the short video on this

page in the Education Centre.

2. If an entry signal occurs for a stock, then open a position for each stock that provides an entry

signal. Use either a (Market on Close) MOC or MOO (Market on Open) order for USA stocks.

It is suggested that a Market order placed before the market opens is used for the ASX.

3. Allocate the equal portion of the portfolio that is allocated to each stock.

4. If an entry signal is missed or there are no current entry signals, a position can still be taken

providing its current price is below that of the Action Price. (Refer to example above)

5. Open trade stocks should be analysed daily for an exit signal.

6. If an exit signal occurs in an open trade stock, the trade should be closed on the following

trading day, using either a (Market on Close) MOC or MOO (Market on Open) order for USA

stocks, or a Market order placed before the market opens for the ASX.

7. If all stocks are closed trades according to SPA3 Investor trend following rules, then all capital

allotted to the portfolio should be in cash.

8. If a dividend distribution occurs while a stock is an open trade then the dividend should be

added to the portfolio as cash which will be added proportionally to the next opened

position/s.

For many investors in Stage 2 and 3, an Equal Weighting Stocks portfolio using SPA3 Investor might

be the preferred strategy as it allows for optimal growth whilst also reducing the potential for large

losses due to Sequence of Returns Risk.



SPA3 Investor Portfolio Manager

Creating a New Portfolio

The SPA3 Investor Portfolio Manager is located within Beyond Charts and is accessed from the

Portfolio Manager Tab.

The position sizing for SPA3 Investor is very simple.

Essentially a portfolio will contain a specific-number of stocks of equally weighted size. This makes the

establishment and ongoing management of a portfolio very simple.

Step 1.

To Start a new portfolio, click on “Portfolios” and choose “New”.

Give the Portfolio a name, select a currency, start date and the amount of funds being used and then

click “Save” once done.


Step 2.

Select the Money Management Tab of the Portfolio and you’ll see that it’s set to “Equal Portion”.

Select the number of stocks the Portfolio will contain, then select the “Trading Rules” tab.


The Money Management screen is very simple. Merely enter the number of open stock positions that

you will manage in this portfolio and SPA3 TradeMaster will calculate the correct position size.

The last section, Costs, allows the user to enter their brokerage default rates that will be calculated

for the Buy Screen.

Brokerage

In future upgrades brokerage % will be included but for the time being a Flat rate is used. Actual

brokerage charged for each transaction can be edited in the buy/sell ticket.


Starting a SPA3 Investor Equal Weighting Portfolio

Entering a New Buy transaction - PM example

After running a scan in Beyond Charts a results table will be produced containing new buy and sell

signals that have occurred in the last 5 trading days.

There are several steps to entering a new position into your portfolio.

Step 1.

Highlight the stock by left-clicking on it. Then click on the “running man” icon and select “Trade”.

A Trade window will open already pre-populated with the necessary figures, including the Stock ticker,

date, quantity and price based off the signal, which in this example is the standard entry signal called

an ATR BO.


Step 2.

Select the Signal Type, either ATR BO (a standard entry signal) or Below Action Price.

You can edit any of the fields in case you need to make any changes to the quantity or price for

example.

When you change the price, the quantity will also change in order to keep the position size equally

weighted. (You can over-ride this if you need to)

Step 3.

Select Save to commit the trade to your Portfolio and the following message will appear.


Entering a Sell Transaction – PM Example

After running a scan in Beyond Charts a results table will be produced containing new buy and sell

signals that have occurred in the last 5 trading days.

The steps are similar to those for entering a new position into your portfolio.

Step 1.

Highlight the stock by left-clicking on it. Then click on the “running man” icon and select “Trade”.

A Trade window will open already pre-populated with the necessary figures, including the Stock ticker,

date, quantity and price based off the signal, which in this example is the standard entry signal called

an ATR BO.


Step 2.

For Sell signals the standard Signal Type is an ATR TS. On occasions other types of sell signals are

produced and in this example it’s a H&S exit signal.

You can edit any of the fields in case you need to make any changes. (next page)

Step 3.

Select Save to commit the trade to your Portfolio and the following message will appear.

Video lessons on using the Portfolio Manager are available to view in the SPA3 Investor short course

in the Education Centre.



Is the Equal Weighting Strategy right for you?

To answer this question the investor will need to spend some time determining their investing

requirements. A great starting point to help with this is the Share Wealth Systems White Paper,

“Critical concepts for an Investing Lifespan”.

It’s only once you know your actual requirements can you realistically choose a suitable approach.

This will depend on what stage of the investing lifespan you are currently in.

The SPA3 Investor Course in the Share Wealth Systems Education Centre provides a series of short

but detailed videos explaining the Equal Weighted Strategy. It is highly recommended that each

section of that short course is completed before any investing begins.

There are example Investment Plans complete with templates and simplified process documents for

you to use, and to make compiling your Investment Plan easier.

All new SPA3 Investor users should seriously consider starting with a small amount of capital

regardless of how much they have to invest. ‘Small’ will be relative for each investor. Consider this a

‘training wheel’ period of acquiring active investment skills with this particular approach. The objective

of the ‘training wheel’ period is to acquire skills, not to make profits.

The reason for this is that everybody will make mistakes at the outset of starting a new process

regardless of what endeavour they take on and it is important that these mistakes are made when the

risk of capital loss is small due to mistakes.

F.A.Q.’s

Why isn’t my data up to date?

Please watch this video on how to locate and use the Data Downloader.

What is the ATR_TS indicator and how does it work?

The ATR_TS (sometimes called the LEAP) indicator is a Low Effort Adaptive Precision volatility-based

indicator. ATR refers to Average True Range and TS refers to Trailing Stop.

The Average True Range (ATR) is simply the average of the True Range over the past 21 days. The True

Range includes the range from high to low each day and includes any inter day price gaps as well.

The ATR is a measure of a stock’s volatility. That is, the likely move up or down in price on any given

day based on its movement over the past 21 days.

Through extensive research we are able to establish a number of bands or ranges of volatility for each

stock. Once the band of volatility as measured by the ATR is known, a Trailing Stop Loss can be

calculated by applying a multiplier to it.

https://vimeo.com/354604168/c3e4b2e622


For example, if a stock has an ATR of $0.85, it means that the stock could easily move $0.85 in either

direction and this would be perfectly normal “behaviour”.

The likelihood that the stock could move twice that amount or 2 X ATR ($1.70) is still quite possible

although a little less likely. Obviously the further away, or higher multiplier of the ATR that we apply

to calculate the Stop Loss, the lower the chance of the stock price reaching that level.

Stop Losses are used to prevent large losses, keeping in mind that all large losses start off as small

ones. Given that each stock behaves differently their Stop Losses will also behave differently.

The initial positioning of the Stop Loss needs to be far enough away, think multiple ATR’s, to ensure

that the chance of it being breached are low, but at the same time not so far away that if they are

breached that it produces an unnecessarily larger loss.

The ATR_TS is dynamic and is constantly monitoring each stock’s current level of volatility and makes

changes “on the go” to the multiplier used on each stock. In this way when volatility reduces, the

multiplier of the ATR also reduces. This results in the Stop Loss moving upwards and “Trailing” behind

the current price.

The ATR_TS is a risk mitigation and trend following indicator and allows investors to invest confidently

knowing that it is constantly monitoring each position to guard against large losses.

I only have one position left to fill but 2 stocks with new Entry signals have been generated,

plus there are 3 stocks that are currently open trades that are below their Action Price that

I could take…..Which one should I choose?

There are several ways that you could decide on which position to take. A simple way to approach this

might be to make new signals a priority and then take the new signal with the Highest Rate of Change

% or ranking as shown in the status tab of the Share Wealth Systems App.

Alternatively, you might decide that the Below Action Price entries will take precedence and the one

closer to the ATR_TS will be chosen first because it would result in a smaller loss if it doesn’t work out.

Another alternative might be that you decide to take the position that has the highest ranking from

all 5 possibilities.

Any of the choices above are valid. You might consider adding some of your own technical criteria as

well, and that’s fine as long as they are completely UNAMBIGUOUS.

The KEY is that you decide on how to handle this before it happens, and that means it needs to be

written into your Investment Plan.

You can find both the ASX and USA EW Stocks Public Portfolio Investment Plans in the SWS Education

Centre or by clicking here.



What’s the best way to start a portfolio?

There are two ways that a new SPA3 Investor Equal Weighting portfolio can be started:

1. Each position in the new portfolio can be opened:

a. when a new SPA3 Investor entry signal occurs for each selected stock, and

b. in any stock that is an open trade but the current price is below its Action Price.

2. To open positions in any of the selected stocks that are open trades at the time that the

portfolio is started.

The future is unknown so depending what happens in the ensuing weeks after starting the portfolio

will determine which the better option is. There is no way of knowing for sure in advance.

It is suggested that Option 1 is used by new SPA3 Investor users and Option 2 only considered when a

lot of experience with SPA3 Investor and active investing has been gained.

Investors may wish to choose either provided it is documented in their Investment Plan.

Summary

This concludes the main parts of the SPA3 Investor Getting Started Manual that covers how to use

SPA3 Investor. From the preceding sections the SPA3 Investor user should know exactly how to

execute SPA3 Investor, that is, what actions to take on a daily basis using either Beyond Charts and/or

the Share Wealth Systems Alerts App.

The separate SPA3 Investor Reference Manual that is provided by Share Wealth Systems details

extensive research results in the way of statistics and simulated portfolio outcomes. These are very

necessary to understand the existence of an ‘edge’, how good the ‘edge’ is and what to expect from

the ‘edge’ in future execution. This breeds confidence to be able to execute the ‘edge’ as it is intended.

It also provides examples of additional portfolio concepts and strategies that can be used with SPA3

Investor.

The Reference Manual should also be used to assist in determining what is the most appropriate

strategy for you in your current investing stage.


Appendix A

SPA3 Investor Exit Signals

This section provides a brief overview of the different exit signals that can be triggered by the SPA3

Investor system, in addition to the standard ATR_TS signals.

SPA3 Investor uses two technical analysis techniques:

1. Swing charts with a three day, or two day in some cases, period setting.

2. A customised adaptive ATR Trailing Stop

The Swing Charts used by SPA3 Investor look similar to percent based zig-zag charts but are not.

The swing is determined by a new low or new high being achieved over the selected period. For

example, for a 7 day swing peak to be achieved requires that a new low occur from the last high

that is lower than the lowest low over the last 7 trading days.

The Swing Charts are used to determine exits that can occur before an ATR Trailing Stop exit occurs.

Patterns are programmed into SPA3 Investor to determine an exit. These patterns are described

below.

TLP = Confirmed 3rd Lower Peak & immediate exit

LP 1

LP 2

LP 3

TLP=Confirmed 3rd Lower Peak

I mmediate exit Signalled


IST = Inside Swing Trough

Formation of a higher trough after lower Peaks have formed

Higher trough confirmed after lower peaks. IST_TS now Active at the lower of the 2 Troughs

T 1

T 2

P 1 P 2

A Close below IST_TS

will Trigger Exit Signal


ISL = Initial Stop Loss


4LT = Lowest of Last 4 Troughs

Trailing stop appears upon 4 Troughs being formed. Trails at the level of the lowest of the 4 most

recent Troughs. (Pink line)

T 3

T 4 T 2

T 1

4 Troughs have been Formed

T3 is the Lowest of the Last 4 Troughs

4 LT_TS is now active

4 LT _ TS now breached

Exit signalled

T 1 T 2

T 3

T 4


LPLT = Lower Peak Lower Trough

Lower Trough Forming

Peak 1 Peak 2 (Lower Peak)

Trough 1

Peak 1 Peak 2 (Lower Peak)

Trough 1

Lower Trough Confirmed

Immediate Exit


(H&S) = Head and Shoulders

(H&S) appears once formation is confirmed. Pattern consists of a first Peak (left shoulder) followed

by a higher Peak (Head) followed by a lower Peak (right shoulder). The neck line forms at the trough

level of each shoulder.

Peak 1= Left Shoulder

Peak 2= Head

Peak 3= Right Shoulder

Lowest Trough = Neck line ( H&S_TS )

Close below Neck line ( H&S )

Triggers Exit Signals

Peak 1= Left Shoulder

Peak 2= Head

Peak 3= Right Shoulder


FLP = First Lower Peak

Peak Formed

after Entry First Lower Peak Confirmed

Triggers Immediate Exit

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