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Originally Posted by Ellie4
Psytrader, thanks for sharing. But one thing - do you suggest shorting near the ema 144? (if prices are below the ema lines), as often the prices, moves back up towards the ema lines.  |
Almost,... I recomend
"entering" near the 144 sma. Direction has more to do with support and resistance,...fundamentals,...and if price is slightly above/below (rule #1) the 144.
This doesnt mean that you have to take a position EVERY time price crosses the 144. It means that a 144 cross is a good time to assess fundamentals aginst your anticipated direction. When all things come together then its time to play.
I havent thought of using an exponential average. I prefer the simple average because it gives a better picture of ballance.