Rules-Based System: A Smarter Way to Trade with Confidence
At Above the Green Line, we believe that emotions should never drive your trading decisions. That’s why our platform is built around a proven, rules-based system designed to help you make consistent, confident trades rooted in data, not guesswork. Whether you’re new to investing or a seasoned trader looking for a disciplined framework, our methodology empowers you to stay focused, minimize mistakes, and capture opportunities in any market condition.
Why Rules-Based Trading Matters
Emotional investing is one of the most common reasons traders underperform. Impulsive decisions, fear-based selling, or chasing hot stocks can derail even the best intentions. A rules-based system eliminates that guesswork.
Instead of reacting to market noise, you operate with a set of predefined criteria. You know when to enter, hold, or exit a trade. This kind of structure reduces uncertainty, promotes discipline, and allows you to repeat high-probability setups week after week.
Our system was developed and refined through decades of real-world experience and is centered on three proprietary indicators: the Green Line, Relative Strength, and the Money Wave.
Core Components of the Above the Green Line System
1. The Green Line
The Green Line represents a stock’s 250-day moving average high. When a stock breaks above this level, it often signals a powerful upward trend is beginning. We focus on stocks that are not only above the Green Line but also staying strong relative to the broader market.
- Why it matters: Buying a stock near its Green Line breakout improves the chances of catching a move early in its uptrend.
- Signal: Look for breakouts from strong consolidations or bases with above-average volume.
2. Relative Strength (RS)
We screen for stocks with a StockCharts Technical Rank (SCTR) above 90. These are the market leaders, showing strength compared to their peers. It’s not enough for a stock to rise—we want it to outperform.
- Why it matters: Stocks with high relative strength tend to continue leading during strong market phases.
- Signal: SCTR > 90 combined with a breakout above the Green Line.
3. The Money Wave
This is a proprietary short-term momentum indicator based on stochastic oscillators. It helps pinpoint ideal entry points by identifying when a strong stock is temporarily oversold.
- Why it matters: Even the strongest stocks pull back. The Money Wave allows you to buy the dip within a bigger uptrend.
- Signal: Money Wave dips below 20, then begins turning up while stock remains above the Green Line.
How Our Rules Work Together
The magic of our system is how these rules align:
- Entry: When a high-RS stock breaks out above the Green Line and the Money Wave dips, it often results in explosive moves.
- Hold: As long as the stock stays strong and above key levels, we ride the trend.
- Exit: When a stock becomes overbought and loses relative strength or breaks key levels, we take profits or move to cash.
This layered confirmation ensures you’re not acting on a single indicator, but a convergence of multiple signals, increasing trade probability.
The Power of Weekly Discipline
Many of our members follow the Top Pick of the Week (TPOW) strategy: buy a strong stock Monday morning and sell by Friday close—unless a 15% target gain hits earlier. It’s a simple, rules-driven approach based entirely on our system.
Every Sunday, we release updated watchlists and commentary, highlighting which stocks are aligning with our proprietary indicators. This consistency keeps members focused and prepared.
Examples in Action
- Example 1: NVDA Breakout
NVDA broke above its Green Line with strong RS in January. The Money Wave signaled a pullback mid-February. The bounce that followed gained 18% in 5 days. - Example 2: ITB Sector Surge
The Homebuilders ETF hit new highs, showed strong SCTR, and Money Wave pullback. Our members entered early and exited with double-digit weekly returns.
These aren’t one-off stories—they’re repeatable setups when the rules are followed.
Built for Every Level of Trader
Whether you’re swing trading, managing a retirement portfolio, or doing both, our system adapts:
- New investors can gain structure and clarity.
- Experienced traders find confidence and reduce overtrading.
- Busy professionals appreciate the simplified weekly process.
And with tools like our ATGL Dashboard, Discord chat, real-time charts, and email alerts, you’re never trading alone.
Learn the Details of the Trading Rules
This page is your introduction to our rules-based system. For the complete breakdown of each technical rule and indicator we use, be sure to visit our Trading Rules page.
Ready to Trade with Confidence?
If you’re tired of emotional decisions and ready to follow a proven process, our system is waiting for you. Get started today with our Basic Monthly Membership or explore long-term options.
“Make Confident Trading Decisions with Rules-Based Investing.”
