![]() ![]() Identify a trending market that has bounced off the 20 day moving average at least twice.That’s why in such a market condition, the 20 day moving average is useful because it can react fast enough even on a short pullback. ![]() In a strong trending market, the depth of the pullback is short-which can be difficult to time your entry if you don’t know what to look for. This 20-period moving average strategy is pretty powerful, right?Ģ0 day moving average: How to time your pullback entry with precision Buy the breakout when the price breaks above the buildup.Allow the 20 day moving average to catch up with the buildup.Here’s how it works for a trending market… To a new trader, it seems difficult to catch a piece of the move.īut if you understand the concept of a buildup, then it’s a different story. “Does it mean buildup is only used when the market is ranging?”īecause you can also apply the same concept to a trending market which is what I’ll cover next… Buy the breakout when the price breaks above resistance and if the price is above the 20 moving average. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |