Is There the Best Moving Average For Swing Trading?Is There the Best Moving Average For Swing Trading?
In swing trading, moving averages are widely used to analyse market trends and identify potential turning points. In this article, we’ll dive into the most commonly used MAs, their unique characteristics, and how they can be applied in swing trading strategies.
What Are Moving Averages?
You definitely know what moving averages are. However, we need to start our article with a brief introduction to this market analysis tool.
A moving average (MA) is a fundamental tool in technical analysis that helps traders understand the direction of a market trend by smoothing out price fluctuations, often touted among the best indicators for swing trading. Instead of focusing on the volatile ups and downs, MAs calculate an average of prices over a specific period, such as 20, 50, or 200 periods. This gives traders a clearer picture of the overall trend by filtering out short-term volatility.
There are different types of moving averages, but they all work on the same principle: tracking the average price over time to highlight the market's trajectory. For example, a 20-period MA shows the average (usually closing price but a trader can choose highs, lows, and opens) over the past 20 periods, updating as new prices come in. This rolling calculation creates a line on the chart, making it easy to identify whether the market is trending upwards, downwards, or moving sideways.
Types of Moving Averages
Moving averages come in various forms, each with unique characteristics that cater to different trading styles and strategies.
Simple Moving Average (SMA)
The simple moving average (SMA) is the most straightforward type, calculated by averaging the closing prices (but a trader can choose any price type) over a set number of periods. For example, a 20-period SMA adds up the last 20 closing prices and divides by 20. It’s popular among traders who want a broader view of price trends without overreacting to short-term fluctuations, making it a contender for one of the best moving averages for swing trading. However, SMAs can lag behind price action, as they give equal weight to all prices in the calculation.
Hull Moving Average (HMA)
The hull moving average (HMA) is designed to reduce lag while maintaining a smooth line. By combining weighted averages with additional smoothing techniques, the HMA offers a balance of speed and clarity, making it an underrated moving average for swing trading.
Exponential Moving Average (EMA)
The exponential moving average (EMA) prioritises recent prices, giving them more weight in the calculation. This makes it more responsive to price changes compared to the SMA. Swing traders often use EMAs in faster-moving markets, where quick adjustments to trend shifts are crucial, with 8- and 21-period EMAs considered by some traders as two of the best EMAs for swing trading. For instance, a 20-period EMA reacts faster to sudden price movements than a 20-period SMA, helping traders spot potential reversals sooner.
Weighted Moving Average (WMA)
Similar to the EMA, the weighted moving average (WMA) also gives more importance to recent prices but does so with a linear weighting system. This means the most recent price has the greatest impact, gradually decreasing with older data. WMAs are less common but useful when traders want a more precise reflection of recent price action.
How to Use Moving Averages in Swing Analysis and Trading
Moving averages are versatile tools that can provide valuable insights for swing traders. Beyond highlighting trends, they can help identify potential turning points and dynamic support or resistance levels. Here’s how they’re commonly used in swing trading:
1. Identifying Trends
MAs are widely used to assess the direction of a trend. For instance, if the price consistently stays above a rising moving average, it suggests an upward trend. Conversely, when prices remain below a declining moving average, the market could be trending downward. Swing traders often rely on shorter moving averages, like the 20-period, for identifying trends that align with their trading horizon.
2. Spotting Reversals with Crossovers
Crossovers happen when two MAs intersect. A common example is a shorter MA crossing above a longer one, which may indicate a shift towards bullish momentum and vice versa.
3. Dynamic Support and Resistance
MAs act as floating support and resistance levels. MAs serve as a support level in an uptrend, with the price bouncing off it repeatedly. In a downtrend, the same moving average might act as resistance, limiting upward moves.
4. Filtering Market Noise
In choppy markets, MAs can smooth out minor fluctuations, making it easier to focus on the bigger picture. Swing traders often use longer MAs, such as the 50-day or 200-day, to filter out irrelevant short-term movements.
5. Timing Entry and Exit Zones
Many traders use crossovers to time their entries and exits, though it’s worth noting their lagging nature means they can result in untimely trades. They can also provide context. For example, if the price approaches a key moving average after a strong move, it might indicate a consolidation phase or a potential reversal, allowing traders to adapt their analysis.
Common Moving Averages for Swing Trading: The 20, 50, and 200 MAs
Swing traders often turn to the 20-, 50-, and 200-period moving averages as their go-to tools for analysing market trends. Each serves a specific purpose, helping traders gauge short-, medium-, and long-term price movements. These moving averages are often used together.
20-Period Moving Average
The 20-period MA is a favourite for short-term trend analysis. It reacts quickly to price changes; therefore, traders use it to identify recent momentum or potential trend shifts. Traders frequently watch for price “bounces” off the 20-period MA as potential indications of continuation in the current trend.
50-Period Moving Average
The 50-period MA provides a medium-term perspective, offering a smoother look at price trends. It’s slower to react than the 20-period MA but avoids being overly lagging. This balance makes it useful for identifying sustained trends while filtering out minor price noise. When prices interact with the 50-period MA, it often acts as a dynamic support or resistance level.
200-Period Moving Average
The 200-period MA is the benchmark for long-term trend analysis. It’s often used to determine the overall market direction. This MA is also a widely followed indicator for institutional traders, adding weight to its significance. Interactions with the 200-period MA often mark key turning points or areas of consolidation.
Traders also monitor crossovers between the 50- and 200-period MAs, recognised by some as the best moving average crossover for swing trading. For instance:
- Golden Cross: When the 50-period MA crosses above the 200-period MA, it suggests potential bullish momentum.
- Death Cross: When the 50-period MA drops below the 200-period MA, it signals a possible bearish shift.
Using Them Together
Using the 20-, 50-, and 200-period MAs together offers a comprehensive approach to identifying the best moving average crossover setups, allowing traders to see the bigger picture while still tracking short-term shifts. For instance, when the price breaks above the 200-period MA while the 20-period MA crosses above the 50-period MA, it may signal the beginning of a broader bullish trend. Meanwhile, a price drop below all three MAs could suggest broader bearish momentum.
Other Moving Average Combinations for Swing Trading
While the 20, 50, and 200-period MAs are staples in swing trading, exploring other combinations can offer nuanced insights tailored to specific trading strategies. Some alternative moving average setups that traders often employ include:
8-Period and 21-Period Exponential Moving Averages (EMAs)
This pairing is favoured by traders seeking to capture short-term price movements with greater sensitivity. They call this the best EMA crossover strategy. The 8-period EMA responds swiftly to recent price changes, while the 21-period EMA provides a slightly broader perspective.
10-Period and 50-Period Simple Moving Averages (SMAs)
Combining the 10- and 50-period SMAs offers a balance between short-term agility and medium-term trend identification. This combination helps traders filter out minor price fluctuations and focus on more sustained movements.
28-Period and 50-Period HMAs
For traders focused on short-to-medium-term trends, the 28- and 50-period HMAs offer a balanced approach. The 28-period HMA reacts quickly to price changes, while the 50-period HMA provides a steadier view of the broader trend. Crossovers between the two can signal potential bullish or bearish momentum shifts, benefiting from the HMA’s reduced lag.
13-Period and 34-Period WMAs
Rooted in Fibonacci sequences, the 13- and 34-period WMAs are employed by traders who believe in the natural rhythm of the markets. A 55-period WMA can also be included for a longer-term perspective. Crossovers between these WMAs can highlight potential trend reversals or continuations, with the WMA adapting more quickly than other MAs due to its weighted calculation.
Implementing These Combinations
When applying these moving average combinations, it's crucial to consider the following:
- Market Conditions: These combinations often perform better in trending markets versus ranging markets. Moreover, shorter MAs might be more effective in capturing quick price movements during high volatility.
- Timeframes: Traders align MAs with their trading horizon. Shorter periods like the 5-period or 8-period MAs are usually used by traders focusing on brief swings, while longer periods like the 50-period MA cater to those looking at extended trends.
- Confirmation with Other Indicators: Relying solely on moving averages can lead to false signals. Traders corroborate these signals with other technical indicators, such as Bollinger Bands or the Relative Strength Index (RSI).
What Moving Averages Should You Use for Swing Trading?
There is no best moving average for swing trading. The choice of MAs ultimately depends on a trader's strategy and preferences. The combinations discussed provide a framework, but experimenting with different setups can help identify what aligns with individual trading styles and objectives.
The Bottom Line
Moving averages are powerful tools for swing trading, offering insights into trends and potential market turning points. Whatever your unique preference for different types and lengths, understanding their application can refine your strategy.
FAQ
Which Moving Average Is Good for Swing Trading?
The 20-period, 50-period, and 200-period moving averages are widely used in swing trading. However, different combinations, like the 8- and 21-period or 13- and 34-period MAs can offer equally valuable insights; it ultimately comes down to the trader’s preference.
What Is the Most Popular Moving Average to Use?
The most popular moving average depends on a trader’s trading style and goals. Shorter MAs, like the 20-day MA, are popular for quick trend identification, while longer ones, such as the 200-day MA, provide a bigger picture. Many traders combine MAs to cover different timeframes.
Is 200 EMA Good for Swing Trading?
The 200-period EMA is useful for swing traders seeking to understand long-term trends. It reacts faster than the 200-period SMA, making it suitable for traders looking to incorporate a responsive indicator in their analysis.
Which Indicator Is Most Popular for Swing Trading?
There isn’t a single best indicator for swing trading. Moving averages, RSI, MACD, and volume indicators are commonly used. Combining these can provide a more comprehensive analysis.
Which Volume Indicator Is Popular for Swing Trading?
The On-Balance Volume (OBV) and Volume Weighted Average Price (VWAP) are popular volume indicators for swing traders, helping assess market momentum.
Which RSI Indicator Is Popular for Swing Trading?
The standard 14-period RSI is widely used. Swing traders often adjust it to shorter periods (e.g., 7) for faster signals or longer periods (e.g., 21) for smoother trends.
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Macrossover
IO Weekly Technicals Review [2024/42]: IO Reversal Deepens
SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures (“SGX IO Futures”) fell last week for a second week in a row, closing USD 4.15/ton lower by Friday.
SGX IO Futures opened at USD 105.85/ton on 14/Oct (Mon) and closed at USD 101.70/ton on 18/Oct (Fri).
Prices briefly touched a weekly high of USD 109.05/ton on 14/Oct (Mon) and a low of USD 99.30/ton on 17/Oct (Thu). It traded in a range of USD 9.75/ton during the week, which was smaller than the prior week.
Prices traded below the pivot point of USD 108.10/ton for the entire week but managed to hold support above the S1 pivot point at 101.15.
Volume peaked on 17/Oct (Thu) as Iron Ore prices declined despite the announcement of expanded housing stimulus measures.
SGX Iron Ore Futures Fundamentals in Summary
Further measures to support the housing industry in China were announced on 17/Oct (Thu). The measures included widened support under the “white list” program to 4 trillion Yuan.
PBoC started the week with a 25 bps cut to the 5-year loan prime rate and a 25 basis point cut to the 1-year loan prime rate offering additional easing measures. Despite an early rally, IO pared gains by the end of the day.
China's GDP growth in Q3 was 0.9%, falling short of analyst expectations but exceeding the 0.5% growth recorded in Q2, which was revised downward. Annual GDP growth reached 4.6%, significantly below the 5% target.
IO China Portside inventories rose by 1.89M tons to 149.73 million tons last week. The increase was driven by significantly higher arrivals and low pace of pickup due to slower restocking.
Based on seasonality, SGX IO Futures Nov contract trades 3.5% below its last 5-year average (USD 105.58/ton). Seasonal performance also suggests there could be a price dip with a low in the next couple of weeks.
Short-Term Moving Averages Signal Reversal of Bullish Trend
The 9-day moving average is continuing its downward trend and marked a bearish crossover on 21/Oct (Mon). Last week, the price held support above the S1 pivot point but faced rejection at the P pivot point on 21/Oct (Mon).
Long-Term Averages Signal Bearish Trend
Price fell below the 100-day moving average on 17/Oct (Thu). Despite reaching highs above this level, price has failed to close above the MA.
MACD Points to Downturn, RSI Flat
MACD signals an ongoing bearish trend since 16/Oct (Wed) with the distance between long and short-term MA continuing to expand as of 21/Oct (Mon). RSI is at the mid-point level of 49.5 signaling neutral trend.
Volatility Eases, Fibonacci 50% Maintained Support Last Week
Volatility briefly edged up in the middle of last week but now continues to decline and has reached the lowest level in October. The 50% Fibonacci level was tested last week but managed to maintain support. With a continued downward trend, the 61.8% Fibonacci level at 97.55 is the next major support level to watch if price declined below 50%.
Selling Pressure Dominates, Price Gap Likely to be Tested This Week
Heavy selling pressure dominates IO trading according to the Accumulation/Distribution indicator (A/D). Price trades at a high volume node which was dominated by sell volume and below a low volume valley which could be tested during the week. The bullish flag failed to maintain last week as prices fell further instead of consolidating.
Hypothetical Trade Setup
Iron Ore prices continued to decline last week as the expanded stimulus measures disappointed market expectations once again. Bearish trend in IO continues as fundamentals signal more pain in store and short-term MA signaled a bearish crossover.
We propose a hypothetical trade set up of selling SGX IO November Futures Contract at USD 101.2/ton with a stop at USD 104.05/ton and target at USD 97.5/ton resulting in reward-to-risk ratio of 1.30x.
Entry: USD 101.2/ton
Target: USD 104.05/ton
Stop Loss: USD 97.5/ton
Profit at Target: USD 370/lot ((101.2-97.5) x 100)
Loss at Stop: USD 285/lot ((101.2-104.05) x 100)
Reward to Risk: 1.30x
This calculation excludes transaction costs comprising of clearing broker fees and exchange clearing fees. The SGX requires a minimum initial margin of USD 1,232/lot and a maintenance margin of USD 1,120/lot.
DISCLAIMER
This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services.
Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
S&P 500 Weakness Relative to Gold?In this weekly chart of the S&P 500 Index denominated in gold (SPX/XAU), I’m observing a noticeable loss of momentum (relative to gold prices). This is evidenced by the decreasing gap between the 50 EMA (Exponential Moving Average) and the 130 EMA at the latest local high compared to the previous one. Additionally, there is a shift in the 'behavior' of these moving averages — they have entered a phase of 'indecision' regarding trend direction. This is quite significant because, for decades, these moving averages have reliably provided a single crossover, followed by a clean multi-year trend.
The last period when there were as many crossovers between the 50 and 130 EMAs within such a short time span was between early 1967 and late 1971. The period marked by the final MA-crossover of that range ultimately led to a dramatic decline of about 95% relative to gold, lasting approximately 8 years and 5 months, culminating in a bottom in January 1980.
I also see additional evidence in the form of price struggling to hold above the 38.2% Fibonacci retracement level from the major cycle peak of late 2000. While price did break above this level several times in 2021 and even managed to hold above it for about six weeks (late November 2021 through early January 2022), it has since failed to reclaim that level. The most recent attempt in February of this year led to a rejection that resulted in a 16% decline over the subsequent eight weeks. Currently, the price relative to gold remains about 15% below that critical level.
If we consider that a 72% decline in the S&P 500 (relative to gold) would be required to revisit the major cycle low seen in early September 2011, it’s clear that there’s significant room for downward movement.
It’s important to note that the S&P 500 could continue delivering positive returns in nominal terms for years to come, regardless of how it performs against gold. The point here is to highlight a potential argument for relative weakness in the S&P 500 when compared to gold, which has been a strong performer so far this year. If this chart is indicative of broader trends, gold has a good chance to continue outperforming, even if this index continues to grind upward.
BTCUSDT: Testing the 20K Support Followed by an Upward MovementBitcoin has experienced a significant upward trajectory, starting below 16k and reaching a peak at 31k. It is anticipated that the next phase will involve a corrective visit to the Fibonacci level of 0.618, estimated to be around $21400. However, I believe Bitcoin may dip slightly further, potentially settling around the 20k mark, which aligns with the support level observed in March. The convergence of the MA25 and MA99 indicators in early June, with the short-term MA falling below the long-term MA, suggests a potential bearish trend in the coming months. It is important to note that this is merely my personal perspective on Bitcoin's outlook and should not be taken as financial advice.
T - Price Targets & Stop Loss📈 What’s up investors! 📉
Welcome back to another one of
💡“Mike’s Ideas”.💡
I post as I find signals… these signals are based on the personal rules I have built and follow in order to make up what I call the “SST Strategy”. Follow for more ideas in the future!!
I have 4 levels marked and colour coded on the Chart.
These levels are:
⚪ White = Entry Point
🔴 Red = Stop Loss
🟢 Green = 1.2:1 Risk Reward Ratio
🟡 Yellow = 1.5:1 Risk Reward Ratio
🔵 Blue = 2:1 Risk Reward Ratio
👀 So what are we looking at today…!!!
🚨( T ) AT&T Inc.🚨
Provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores. It also provides data, voice, security, cloud solutions, outsourcing, and managed and professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers. It markets its communications services and products under the AT&T, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The company's Latin America segment provides wireless services in Mexico; and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brand names. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is headquartered in Dallas, Texas.
A death cross that never happened to Bitcoin is about to happen.A 200 and 21 weekly MA crossover are never happened in bitcoin history ever. Such moving average crossover almost occurred back in September 2015 but the price immediately reverse direction to the upside so that the death cross didn't happen.
This time the price of bitcoin has stayed below the 200 weekly moving average for a relatively long period of time. Bitcoin tried to break above the 200 weekly MA but got rejected which increased the potential downside for bitcoin and increased the likeliness of a death cross to happen.
Celsius (CELH) ain't Red Bull but...it's BULLish!Celsius (CELH) ain't Red Bull but...it's BULLish!
Patten Identified
Inverted Head & Shoulders on the daily timeframe
The daily chart displays the following information-
-9 MA is above 21 and the 50 MA!
-Price is above the 200 MA
-Increasing momentum and volume
*This is not financial advice
Drink your water,
MrALtrades00
BTC to 29K !!!!Hi everyone!
Daily 4H 1H
As previously said on my previous post mentioned that BTC had a chance to test 45K. But unfortunately the current circumstances across all markets are NOT looking good all this as been referred to the current situation with Russia and Ukraine.
But NOT everything is bad as good outcomes come from Red markets: We can accumulate Long term potential coins with solid projects. Forget meme coins and focus on solid structured projects, much suggestion is to stay away from Scalping unless you know what you are doing.
I mentioned that "If failing to hold above this level and( a) daily candle closes below $40.8K (White broken line)Would mean that the Price Channel is broken BTC cloud drop to $35k or even lower." My $34.5k New trend line in blue has touched for the second time and is playing a key support If failing to hold we can see it going down to $29K.
ALWAYS look for extra confirmation before making any trade.
Happy trading people
(No financial advice)
DISCLAIMER
The trading ideas, analysis, and comments above should not be considered financial advice or recommendation to trade or invest in any financial product. Your personal situation has not been taken into consideration in the trade ideas. This page is for general educational purposes only. Do not buy or sell any product discusses on this page before doing your own research DYOR. Always do your own analysis and research and be aware of the risks involved in trading any financial product :)
BBIG on a breakout? Testing 200 MA?Wedge 1, retracement after run up, break out of pattern using underlying support, bounce off 200 MA, 12/26 EMA crossover, run up
Wedge 2, retracement after run up, breakout of pattern using underlying support, bounce off 200 MA, 12/26 EMA crossover, run up
Wedge 3, retracement after run up, breakout of pattern using underlying support, 12/26 EMA cross over possibly coming, this time trading under 200 MA
200 MA major resistance but a break above is BULLISH to me - look for golden cross if bulls maintain control.
FB to return to all time highsInverse Head and shoulders breakout, typically a strong bottoming pattern as seen with the overall market a couple weeks ago which too remains strong.
FB has broken out through the neckline with a Fast MA Crossover indicating the correction may be over, a good risk reward presents itself here 1:4 if it were to break and close back below the neckline the trade would be wrong.
$65K BITCOIN INCOMING!!?!! WHAT DO YOU THINK??!With Bitcoin giving off a slight rally towards the market close today we are back above the $63K mark with a healthy chart in front of us. If we can see a break out above the neckline here we have big potential sights ahead of the weekend.
Im currently still in my Long Position from our original break out price of just above 61K. Taking some chips off of the table on hitting our previous price targets as mentioned in the previous ideas and adding more upon the reversion to the mean at around $62,500
what were looking for now is:
Support above the neckline of our W Break.
Volume confirmation, this is very important providing that we do not get the volume we have further potential to see downwards price action.
Price target one and two are in pink.
Of course we always have the possibility to see another slide towards the downside before we move significantly up and vice a versa so we'll be be watching closely!
What's your thoughts and do you agree or disagree with the targets I have in mind for the short term. let me know in the comments!
Not financial advice, just sharing my thoughts.
PRTY is bullish againNYSE:PRTY broke out of the head and shoulders pattern backed up by positive earnings. Also 50 MA and 200 MA bullish cross over took place.
Any pull back towards the neckline is a buying opportunity, targeting 6.18$, stop is a bit far at 2.4$.
Hit the like button please if you find this useful :)
This is only my own view and not a financial advice, do your own analysis before buying or selling
Happy Trading!
THE BULLS ARE NOT GONE YET!!I'm sensing strong bullish pressure from the Daily Time-frame. Indicated to the left of the chart is a MA crossover between my Exponential & Weighted Moving Averages. Price recently bounced off of Daily Support towards the end of June. I expect the signal EMA to make a potential crossover with the 200 EMA.
(Orange Line) If that occurs i predict price movements towards Daily Resistance.
Comment below your analysis of GJ
BTCUSD: Hash Ribbons Buy Signals 2016-2020 ExtrapolationThe buy signal (in blue) has not yet appeared on the Daily time-frame, we are however close to getting our 4th buy signal in so many years after the bullish MA crossover of the Hash Ribbons shorter & longer SMAs (30 & 60) has occurred. See recent buy signals in past 4 years as well as the returns to current June 27th closing price price of $9,010. Hard not to be feeling slightly bullish right now, pending confirmation.
Month Year: Price (+% since signal to date)
September 2016: $616 (+1,360%)
January 2019: $3,652 (+146%)
December 2019: $7,245 (+24%)
April 2020: $7,552 (+19%)
Weekly chart still pending MA crossover:
Monthly chart is still one step behind, not yet green even:
BTCUSD: Network Hash Gives 10th Buy Signal In 9 Years
AUDCHF 1D MA-X MOVING AVERAGE CROSS
Tim's MA-X Strategy.
This is a Moving Average Crossover or MA-X Trading Strategy setup.
MA-X strategy consists of the 100 period simple moving average (SMA) in red,
and the 20 period exponential moving average in blue.
If the 20 ema is above the 100 sma then we only take buys or longs.
If the 20 ema is below the 100 sma the we only take selss or shorts.
*In this case price is above the 100 sma so we will only take buys or longs.
*This Pair has been in a nice uptrend foe some time.
*It's now pulled back below the 20 ema and consolidating below the 20.
*We are going to look for a close above the 20 ema to go long.
*This trade plan we buy a daily candle close above the 20 ema.
On the breaking candle to enter a full-sized position we want to the volume bar reach up to the volume average.
If it doesn't reach the average but does reach 75% of the average open a ½ size position to reduce risk.
You can calculate the percentage by dividing the first volume average by the second volume average.
You should at least get 75%, if you don't then stand aside on the trade.
The stop loss will be 1.5 x ATR.
The first target will be 1 x ATR.
So the way that works is you get your candle close above the 20 ema that's your entry point.
At that time you look at the ATR of that candle.
You multiply that by 1.5 to get your SL.
You measure that distance behind the entry and that will be your SL.
Then you measure 1 ATR above the entry and that will be your first target.
If after entering the trade the candle closes back below the 20 ema, tke the loss right then.
Do not wait for price to hit the SL.
Our intention is that a breakout above the 20 ema should be explosive and hit our target fairly quickly.
If the momentum goes away we want to shut the trade down without taking a full stop if possible.
When price hits our first target, close half the position for profit and set the SL to break even on the remainder.
Follow stops as price moves in our direction until the market takes us out.
These two rules are the very definition of cutting your losses and letting your winners run.
Typically does this by using two positions.
The first position has a stop loss and a take profit.
That position will close automatically when the first target is hit.
The second position will only have a stop loss and not take profit.
This is the position that will be allowed to run.
When the first target is hit we have to manually move our stop up to break even on the second position.
Risk only two percent of your trading account of each trade.
Each position will then only be 1%.
LONG - AMB - Trading OpportunityBullish MAs cross happening on multiple time frames, BINANCE:AMBBTC seems to be getting ready for a leg up.
Entry: 0.00000183
Target : 0.00000204
SL: 0.00000176
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gbpcad bearish move downon the gbpcad weekly, price seems to have hit major resistance zone. Possibly a h&s pattern could occur.
Going down the daily and 4 hr chart prices has seemed to have made HL's and HH's. HH has seems to have touched major resistance zone and I now believe that price will start the create LH's and LL's if it breaks out of the trend.
Plus ma crossover at the resistance level indicates selling pressure. Let's see how this trade goes.
CRMD - Technical Indications for Impending BreakoutI'm in at 1.34. Notes given on the chart. Conduct your own due diligence.
BTC MA Cross Bear StrategyWhat I'm doing in this bear market is cycling through the medium time-frames and looking for the price to get stuck under a successful moving average cross like you see here. Price will likely fall sometime around the beginning of the next 45 minute candle. Stop is set just above the cross just incase the cross-over is challenged.