The PowerX strategy is a "Trend Following Swing Trading Strategy” 

It is effective when the market is trending, and it is not suited to times when the market is choppy or going sideways.

It relies on price movements of securities that are typically sustained for 5 to 20 days.

Once a trade has been identified you can either trade the stock or purchase an option.

• If the stock has a “Buy” signal then you can either Buy (Long) the stock or BUY a call option.
• If the stock has a “Sell” signal then you can either Sell (Short) the stock or BUY a put option.

The expiration dates for the options will be between 30 and 60 days.

The expiration date needs to be at least 30 days away to avoid the effects of "Time Decay", this really kicks in in the last 20 days as the option approaches its expiration date.

The software tells you

- What to trade:  These are the best of the securities in the Scanner Results window. 

- When to enter: Each security has a Signal price, this must to be crossed before you enter a trade.

- When to exit:   Either for a profit or a loss.

Next: How the Scanner works 
Prev: Foreword
Contents: PowerX Analyzer User Guide