Jim Berg strategy

Jim Berg is a well know Australian trader who uses RSI and volatility as the basis for his trading strategy.

In summary, his trading strategy requires all of the following for an entry into a position:

• Rising trend on a weekly chart
• RSI (7) oversold on a daily chart
• Volatility entry trigger - based on price moving above the lowest low of past 20 days by two times a 10 Average true range (ATR) factor
• An initial stop under a recent swing low no more than 10% away from entry.

The position is managed in two ways, by:

1. trailing a stop using a 2 times ATR chandelier and exiting if price closes below the stop line 2 days consecutively
2. taking profits if price goes above the JB profit taker line if profit is above 10%

The strategy requires access to Jim Berg's indicators as part of your charting package.

Here is an example of a setup (RSI below 30) and the entry and a profit taker exit:

If you would like to learn more about Jim Berg and his trading strategy, check out his website here.