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Generally, I am more cautious with my entries when price is a good distance away away from the MA. At that point, there is a higher probability of a mean-reversion effect that brings price back toward the MA.
This is where a trader will learn a lot about setup probabilities by simply studying his past winners and losers. Of course, this process can be speeded up by backtesting.
It is good to see you getting your feet wet with this. This is how we learn.
Generally, I am more cautious with my entries when price is a good distance away away from the MA. At that point, there is a higher probability of a mean-reversion effect that brings price back toward the MA.
This is where a trader will learn a lot about setup probabilities by simply studying his past winners and losers. Of course, this process can be speeded up by backtesting.
It is good to see you getting your feet wet with this. This is how we learn.