TRADING RULES FOR CANDLESTICK WITH MOVING AVERAGE
LONG TRADING SETUP
A pullback down to the 20 EMA
A bullish candlestick pattern overlapping with the 20 EMA
Buy as price breaks above the high of the last bar of the candlestick pattern
SHORT TRADING SETUP
A pullback up to the 20 EMA
A bearish candlestick pattern overlapping with the 20 EMA
Sell as price breaks below the low of the last bar of the candlestick pattern
This is a candlestick chart of EUR/USD forex. We looked out for candlestick patterns with a moving average.
A trade setup came as a bearish engulfing candlestick pattern formed at the 20-period EMA. The next day was a strong bear trend bar. It triggered our sell order at the low of the pattern. This trade followed through quickly.
Look at the top of the chart. After a test of the previous trend high, prices reversed down with strong momentum.
The pullback upwards tested the 20-period EMA and the low of a prior trading range (the blue horizontal line). The bearish engulfing pattern showed strong rejection by these resistances. This trade had the potential to catch the beginning of a new downwards trend.
When trading candlestick patterns with a moving average, you can use the distance between the candlesticks and the EMA to judge the momentum. In this case, the large gap between the candlesticks and the EMA showed the bearish momentum.
What a beautiful Call/Trade and Execution
I want you ALL to look very carefully without even 1 trade done in Pre-Market LOOK how I called this out.
Open at $107+
Scale in SHORT at $107 add on Pops
Take it down 5 points or more
Stock hit $101.23 for +6 POINTS of PURE MULA$$$
Trade Recap from last Thursday. #intraday
When setup meets then execute. Before I never used to plan in depth until I was pumping money into the market
Without a plan you don’t know what you are doing. Relying on price action which can be easily manipulated at any point
It was when I decided to have proper risk management and specific rules to go through before I even enter a trade, the depth I go now to plan has been 10x
How about everyone else? What are your set of rules?
One of the uses a Forex trader may have for price action trading is in relation to support and resistance levels.
In simple terms, support is defined as the price level where price has bounced up from after it had been moving downwards.
Now, if it bounces more than once on this price level every time it comes to this level, it can make this support level more significant – to a point. This is when you start seeing the double or triple bottom trading pattern form.
A resistance level is a price level where price after going up for some time, falls back from as noted with the top red line.
And similar to the support level, if price tries to go up back to this level and break it but keeps getting knocked back down by more than once, this makes this resistance level a significant level – to a point.
While many traders think multiple hits makes a support or resistance level stronger, the opposite is often true.
Many traders place their stop just beyond these levels and often times traders will be hit by a stop run that takes them from their trades and then price movement continues in the direction the trader wanted.
This is the general area that you will see the formation of a pin bar which is a price action pattern
you can trade depending on the location it is found.
if you want to learn how to trade the market using my price action trading strategies,
i highly recommend purchase my ebook (the candlestick trading bible). if you are interested,check it out in my bio, or send me a private message.
The elements of good trading: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.
The Breakout trap & Reverse trade is taking the opposite move of the initial breakout, entering into a trade with the true market momentum.
The anatomy of the Breakout Trap & Reverse trade is made up of a two candle combination, where the second candle is the actual trade trigger.
This is the only price action setup that we trade directely’, which means we don’t need to wait for the trigger candle to close before a valid signal is produced.
The explosive, rapid profit potential of this trade setup is the reason why it’s my favorite and best Forex signals
included in our price action trading system.
To learn more,i highly recommend you purchase the candlestick trading bible ebook.this ebook covers the most powerful trading systems in history.to purchase your copy, check out the link in my bio or send me a private message.
32 3747:21 AM Sep 29, 2018
Everybody likes learning about the daily routines of famous people. Especially the productive ones. Check out this chart for some inspiration, and to see why some of these folks were tired all the time.
30 2903:20 PM Oct 2, 2018
[SWIPE FOR MORE]: A Star Is Born Soundtrack is officially Gaga’s 5th consecutive n°1 album on the Billboard 200! Lady Gaga becomes the first female artist this decade to have 5 n°1 albums in the US!👏✨