Looking back 4 years ago when I thirst for knowledge about stocks that I kept exploring on traders who may have shared some write ups or journals about how they started or perhaps a system they use to trade the market, and luckily I stumbled among the blogs of Zeefreaks.
Quite fascinating he came up with some story telling with one figures of Greek mythology with the Mayan civilization photo who are well known as astronomers as they record every phenomenon from the sky.
Every aspiring traders will definitely see how simple to understand these so called AOTS or Alignment of the Stars with the use of three simple Moving Average of length of 20, 50, 100.
*For my personal use I added MA200 but will no longer show from examples below.
Formation Required:
MA20>MA50>MA100
cue: when MA100 dives below your price with a transition to aots formation to validate.
Concept:
➤buy before ZS (Zeus' Strike)=MA100 dives below your prices.
➤now observe if it will progress to AOTS formation.
➤sell when the trend breaks
➤or sell when you're happy (my own view)
Disclaimer: Sample charts provided are for educational purposes only.
STOCK: ACEN
➤be mindful always to your left side of your chart and check for previous high when your MA100 about to position below your prices.
➤after its first breakout, it took at least more than a week where your aots transition is about to align.
➤you may add up MA5 as your trigger when violated and close position or sell half as long as it has not yet breached your MA20.
➤notice how those 3 MA widens it gap in between and how it affects the price, but once you notice MA20 starts to constrict or narrow its gap with MA50 start to lock in your profits.
➤observe how the prices stayed along MA20 while in sideways before it made its next run.
➤by chance when I was trying to explore aots on a daily tf, I switched to a lower time frame of 5m and also saw some mini aots in lower time frame.
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➤after the ZS it took more than a week before the transition to aots completed.
➤always set MA5 trigger to take profit as you can't tell if it touches your MA20 and MA50.
➤if you checked 5m tf resulted to 2 ZS occurrence before a breakout.
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This is just my own version and tweak of the AOTS by Zeefreaks with the 5min lower time frame confirmation plus the observance of previous high breakouts.
If you have followed him closely from his blog and pay attention on bounce play then you should already had a peek on added tools he used in partner with aots.
The moment your MAs started to narrow and get tangled, that's already your sign that a reversal may take place so best to protect your profits.
Final say, you may also track the weekly tf if you have any aots formation.
Hope you have picked up new learning on how to turn aots to your advantage when the market gives you such opportunity.
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