I see the colors didnt really do well in the convert to jpg but anyway. We see a dip through the MAs in the beginning, and thats hands off, not trading unless you whanna do some high risk and difficult bolly or envelope trading. So for now lets not focus on that. Instead we see after a bit of drop that price touches the blue MA, its MA 9 and it pushes away from it a little bit and goes back to dropping for a bit and then its at the 9 again, this time it breaks it and locks beyond it and it even breaks the dark red one MA 21. But then it pushes away and drops out of the blue and the red again. And then its back again into the MAs and this time it gets at the yellow one MA 34, and is pushed away dropping out of it again, and then its back for a fourth run into the MAs and this time it hits the green one MA 55, and it goes back out for a little bit.
So how to trade that?
Well short at the blue one, close that, short at the red one, close that, short at the yellow one close that, and then if you are feeling brave short at the green one and close that.
Well it was simple this time, and it most often is not that nice, but this is the kind of stuff im working on now.
The thing that is tricky is of course TP, i cant give a mechanical/mathematical definition of when to close, i have to do it on skill/intuition/discretion. The other krux is that this formula of when to enter cannot be applied at all times. The MAs needs to be separated a bit, and its not super easy to make a clean definition of how much separation is needed between each to give the entries this clean definition as in the example.
So how to trade that?
Well short at the blue one, close that, short at the red one, close that, short at the yellow one close that, and then if you are feeling brave short at the green one and close that.
Well it was simple this time, and it most often is not that nice, but this is the kind of stuff im working on now.
The thing that is tricky is of course TP, i cant give a mechanical/mathematical definition of when to close, i have to do it on skill/intuition/discretion. The other krux is that this formula of when to enter cannot be applied at all times. The MAs needs to be separated a bit, and its not super easy to make a clean definition of how much separation is needed between each to give the entries this clean definition as in the example.
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