AdiMaco
Romania
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The three-thumb rule – An Andre Stagge favourite About the three-thumb rule The three-thumb rule is showcased by trader and investor Andre Stagge. The rule has its origins in institutional asset management. Andre Stagge regularly uses this rule to select assets, determine trends, and even uses it as a buy (or short sell) signal. The rule consists of three criteria. When all three criteria point in the same direction, a market is interesting. Rule number 1 compares the market price on 5 January with the market price on 31 December of the previous year. If the 5 January price is higher than the 31 December price, it is a thumbs up. If the 5 January price is lower, it is a thumbs down. Because the 5 January price is compared to the 31 December price, this criterion is fixed for the year. Rule number 2 is based on the 200-day moving average line. Professional investors call this line the concrete line. They consider a breakthrough in this line very important. When the market price is above the 200-day moving average, it is a thumbs up. A market price below the 200-day moving average is a thumbs down. Rule number 3 compares the current market price to the market price on 31 December of the previous year. When the current market price is above the 31 December price, it is a thumbs up. Thumbs down if the current market price is below the 31 December price.
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