DislikedHi Cindy, thanks for the insight.
Many a times I had situations that the EMA crossover showed a specific trend but when I entered it is late (usual with moving averages). So when I enter the trade using the specific signal and it gets reversed what should I do??
Usually I set the SL a bit high so that spikes or retracement does not affect the trend....but if the trend is really reversed then the high Sl costs very dearly.....
I was also thinking about hedging against the trend in case of reversal but that leaves me confused about when to exit the trade....whats your view.
Thanks,
Abhishek.Ignored
If you could post an chart with an example it might be easier to answer
AS for your stops you summed it up in one you never know if a reversal is a shortterm retracement or trend reversal until it'dstoo late thats why you should keep it simle and just have a small stop to begin with
If it takes you out and then goes in your direction - this is frustrating but just part of the game. THere will always be other trades. Thats my opinion
HEdging against the trend: Wouldn't recommend it - If you're wrong you're wrong theres no shame in that happens to the best of them - trying to chase the market is suicide in those situations.
Keep things simple is best.
Hope this helps
Time hides Nothing