We look to the higher time frame (HTF) in order to decide which way price is likely to move. Recently I have been thinking about what the qualities or conditions are that would give us the best HTF opportunities. This is what I have come up with.
1. The EMAs are nicely separated, but not 'ballooning' apart, best is if they are parallel.
2. The price bars are 'dancing' along the outside of the EMAs - not crossing into the space between them and not pulling away from them.
As always, this is easy afterwards, but less easy when doing it live.
1. The EMAs are nicely separated, but not 'ballooning' apart, best is if they are parallel.
2. The price bars are 'dancing' along the outside of the EMAs - not crossing into the space between them and not pulling away from them.
As always, this is easy afterwards, but less easy when doing it live.