THE focus of the blog shifted for a quick look at trend trading as an initial focus for new traders. It has been very nice of the market to work with us to help with the discussion. The trends have been fantastic.
TODAY:
Price action was stalling around 1506 area. As a new trader you would not have the experience nor knowledge of the Break Out Targets. But you would have a two bar pull back to EMA with a third bar breaking it. This is a steep sell off, (bearish) trend that is playable with your trend lines. That TL was broken around bar 8-9 for your exit.
The pull back to the EMA would be considered counter trend, and not a play for the beginner. I do not suggest playing these, until you are confident with "with trend" plays.
In this case, some shorts were covered and a reversal long was enter and held until price stalled around 1504. You now have a second point for a bearish trend line, and should be looking for a short.. A scalp short was taken for a push to the EMA. Trading was over due to another commitment.
*******************
WHAT FOLLOWED?
You trend line continued to see hits for additional shorts and/or new entries. There was a counter trend pull back that broke the trend line. Around bar 66 you have a higher low. Here you should be looking for another push to challenge the bear trend line. With a higher low, a TL break, and a break above the EMA, this is a legitimate long.
Another higher low at bar 78 area was another long consideration.
Continue to practice your trend trades, and practice the micro trends that develop. You should always be looking for a reason to enter, and just as important, a reason to GET OUT.
No comments:
Post a Comment