PD
PDQ
Rep: 110
Posts: 167
Hi Margie:
This is Linda Rasche trade that looks to enter a trending market on a pullback.
Use the following indicators:
14 period ADX
20 period Exponential Moving Average
You look for the ADX to rise above 30, which would indicate a trending market, and then look to enter on a pullback to the 20EMA. The minimum objective is a re-test of the recent swing extreme. The price more often than not exceeds the re-test though.
Note that many times in a strongly trending market, you will not get the full pullback to the EMA, or the market may move sideways until the EMA catches up.
This is Linda Rasche trade that looks to enter a trending market on a pullback.
Use the following indicators:
14 period ADX
20 period Exponential Moving Average
You look for the ADX to rise above 30, which would indicate a trending market, and then look to enter on a pullback to the 20EMA. The minimum objective is a re-test of the recent swing extreme. The price more often than not exceeds the re-test though.
Note that many times in a strongly trending market, you will not get the full pullback to the EMA, or the market may move sideways until the EMA catches up.
MA
Maria
Rep: 0
Posts: 88
flat again. It doesn't look like a trend day. I'm done for today with a very small profit. GL guys.
BR
BruceM
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Posts: 19,895
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or read page 33 of this thread for faster results
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