The first trade of a new setup we've been working on for sometime. Here we use two short term moving averages to determine our entry into a trade. Ideally, price should touch the moving average before a trade can be placed. This is NOT a moving average crossover strategy. The daily pivot and the 200EMA also play an important role. That is, for all bullish trade, price MUST be above the daily pivot and the 200EMA before any moving average price touch will be considered a trade setup. Likewise for bearish setups, prices MUST be below the daily pivot and the 200EMA before any moving average will be considered a credible setup.In this trade we were bearish and as we can see, price had broken out of the daily pivot and the 200EMA. Therefore price touching the short term MAs and then turning, presents a trade entry (16572) with the first profit target at 16481.
No comments:
Post a Comment