The 180 Trading Strategy is how Jerry Robinson trades stocks. It's based on reading and understanding charts, so the fundamental principles work the same across all kinds of trades - options, stocks, dividends, commodities, etc.

A chart has four stages ( - Four stages of market cycle) in its cycle - which can be applied to any timeframe (day, weeks, months, years):

1. Stage 1 - When the stock is at the bottom, not moving up or down
2. Stage 2 - When the stock is in an uptrend
3. Stage 3 - When the stock is at the top, changing directions
4. Stage 4 - When the stock is in a downtrend

The best time ( - Best time to buy stocks) to buy stocks is when it's transitioning from Stage 1 into Stage 2 at the beginning of the uptrend. Then to sell before it transitions into Stage 4.

You know when these transitions are happening based on watching the 180 EMA, 200 EMA, and surges in volume.

If the chart is above both the 180 and 200 EMAs, and there's a higher than average surge in volume, then it's extremely likely ( - Back-dated analysis of 180 Strategy) that a trend is going to happen - most likely, an uptrend.

This works because it's assumed that the large investment houses use the 180 EMA internally to gauge when to buy. When you see the large surge in volume, you're seeing them throw massive amounts of bull money at a stagnant stock; wrenching it into an uptrend that smaller investors can ride.

Similarly, you sell based on the same principle. You wait until the "smart money" throws large amounts of volume at the chart right as it goes below the 180 EMA line. Once the investment houses get out, it's time for you to get out as well.

Citations

• (The Complete Position Trading Course #citation)

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