![]() The price has a 20 EMA line that is pointing upwards, at a two o'clock angle or steeper for an uptrend, or a four o'clock angle for a downtrend.Make sure that the price has been moving up for several days with at least one Higher Low for an uptrend and a Lower High for a downtrend.Don't worry, these rules can be used for both up and downtrends, and it also works on different time frames: The goal is to recognize where the direction of the price is going to move. Once you know the price direction in the daily chart, it would be much easier to find an entry in the 15-minute chart.įirst, to identify the trend, you need to set up several rules on the chart. You don't want to enter the market and risk your money while the trend is unclear, right? That is why it is important to identify the trend beforehand and make sure that it is going strong. Identify the Major Trendīefore you jump into the 15-minute chart, you should know how to identify the trend in the higher timeframe, namely the daily chart. In other words, you can easily identify the trend from there. The 20 EMA is the best moving averages to use in the 15-minute charts because the price follows it most accurately during multi-day trends. If you're into scalping or other short-term strategies, making use of a Moving Average in a 15-minute chart is quite recommended. See Also: The Most Powerful Candlestick Patterns You Should TradeĢ0 EMA Trading Strategy for 15-Minute Chart Place your stop loss a few pips (at least 5-10 pips depends on the time frame you use) below the signal candlestick for a buy trade and above the signal candlestick for a sell trade.If the next candlestick does not activate the order, you need to cancel that pending order. In contrast, in a downtrend market, place your pending sell stop order 1-2 pips below the signal candlestick's Low.If the next candlestick doesn't activate your order, then you should cancel it. In an uptrend market, you should place your buy stop pending order at least 1-2 pips above the High of the signal candlestick.This is the only thing that you should pay attention to because your entry depends on the signal candlestick's Low and High. The candlestick that first touches the 20 EMA after the trend has changed direction is called the signal candlestick. ![]() In comparison, if the price is closing below the 20 EMA, then it is a downtrend.
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