Holy Grail Trading Strategy

Holy Grail Trading Strategy is again one strategy which gives high percentage of winning trade and loved by Master traders.

Again, Linda Bradford Raschke and Larry Connors popularized this strategy. This is one of my favourite Trend Trading Strategy.

It needs a trend – uptrend and downtrend for the strategy to work. It is a continuation trading strategy and hence, all buy/sell trading are to be in line with the underlying trend.


Let’s look into how it works.

Criteria for Buy

  • ADX > 30 and rising
  • Look for Price retracement to 20 EMA. ADX also should turns down at this moment.
  • When Price touch 20 EMA, put a Buy stop above the high of the Previous Candle.
  • Put Stop Loss at newly formed Swing Low

Criteria for Sell:  Reverse of buy condition.

Let’s understand this with an example for Sun Pharma where the set up is seen.

In third week of Dec’20, we saw that there was a strong uptrend in Sunpharma with ADX going above 30 and continued rising.

Then price suddenly retraced to 20 EMA in a single day with a big red candle.

Now, both our 2 criteria got fulfilled for going long and hence we will put a buy limit order above previous candle (which happens to be a small doji).

We put our buy order little above the doji candle. I can see a resistance just around the high of the doji and hence buy order is put a little over the resistance.

Our Buy order got hit on 4th day and we put a stop loss below the last swing low.

Our target is the next resistance price.

Isn’t this a simple Trading Strategy.

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