Capturing Profits With Technical Analysis By Sylvain Vervoort | Recommended |

Martin had been trading for six years, but he still felt like he was gambling. He’d ride a stock up 15%, only to watch it give back 20% the next week. His screen was a Jackson Pollock of green and red candles. Fear was his co-pilot; greed, his navigator.

But Vervoort’s system—a combination of a slow stochastic oscillator, a 10-period RSI, and a proprietary “end-of-trend” signal—flashed . Martin had been trading for six years, but

One evening, watching the S&P 500 hover at an all-time high, Martin’s new system triggered a on SPY. The stochastic had diverged bearishly for three weeks. Volume was drying up. a 10-period RSI

He placed a conditional order: short SPY at $478, stop at $484, target $462. stop at $484