DislikedThe Only Reason That I Don't Trade This Kind Of Situations Is In The Picture Below. I Like To See Retraces For Forming The Wave Small, Comparing To The Previous Move.
As You Said, Many Tries To Break The Resistance Failed, So It's a Good Place To Bet For Short.
The Other Thing Is That 89 EMA Is Just For Identifying The General Trend. Break Of It Is Not An Issue. But Sometimes I Use It For Placing My SL.
After All It's Not a Mistake If You Learn Some Thing From Your Move, And I'm Sure You Do
Regards,
BasberIgnored
Ok...There is no pic for this post. I cant draw one actually. But the reason I was talking about 89 EMA was a little visual backtest/scanning I have done over past few days. The best of entries on Sonic R had a favourable 89 EMA. That is, if we were shorting, it was a above us and when we were longing, it was below the Price.
Another observation was, 8 out of 10 times when the trend changed, the 89 EMA was broken with formation of perfect waves. Like you said in your post above. The set up you dont trade will generally not break through the 89EMA for a trend reversal.
Thanks Basber for the drawings. it will certainly help clear some cobwebs.
Thanks to Snu too for the feedback.
In case Sonic is reading this, i would like to ask if he has taken any trades ?
Thanks
AG