1. The Delphic Buy phenomenon:

  • Firstly, MA5 broke up and crossed above MA20; After that, MA5 and MA20 also cut MA50 respectively.
  • After a period of increasing, MA5 corrected and decreased again. The 5-day MA cut MA20 but did not cut the 50-day MA.
  • MA5 then crossed again above MA20 again with a sudden increase in volume and could create a price gap in a few sessions. And both of these lines are still above the MA50.

2. Delphic Sell phenomenon:
  • Firstly, MA5 cut below MA20; After that, MA5 and MA20 also cut below MA50.
  • After a period of the uptrend, the MA 5 pulls back and bounces up. The 5-day MA cut above the 20-day MA. But it didn't cut above the 50-day MA.
  • MA5 then cut below MA20 again with a sudden increase in volume and could create a price gap in a few sessions. And both of these lines are still below the MA50.

3. Trading strategies with Delphic Sell and Delphic Buy:

The trading strategy is very simple, the whole family just needs to obey the signals appearing based on the above phenomenon.
  • You can Buy when the Delphic Buy phenomenon appears on the graph.
  • You can Sell when the phenomenon Delphic Sell appears on the chart.
  • Your stop loss is placed above / below the sell/buy signal candlestick or below the nearest support/resistance levels / above the nearest resistance levels - so that it makes sense!
  • You take profit at R / R ratio, profit = 2, 3 times loss or trailing stop loss following MAs.

In the example above with the GBPUSD currency pair, the aiming signal appears on the shaded area where the red arrow is pointing. Here, you are going to sell if the Delphic phenomenon occurs. A sell order will be triggered at 1.325, with stop loss set at 1.344 when Delphic Sell is confirmed.

This is a very simple but effective trading system based on a very common phenomenon. This is a trend trading strategy that ensures we can follow the price's momentum. Invite the whole family to test and post the effectiveness for us to discuss offline!