RE: CHARTS -T LINE TIPS20 Jul 2017 08:50
Good morning AdJshares.Using the EMA54 for entry is a conservative approach to trading/investing being less risky but as a lagging indicator can miss out quite a bit of a trend. Likewise using it for exit can keep one in a trend for a longer period ignoring mini retracements but conversely can leave quite a bit of profit on the table when it is finally time to quit.
I prefer to use it for the initial entry but use the T line for exit and re-entry while the trend is still in place. Still miss out on pips at the start so am looking at other strategies for entering trades earlier e.g. using engulfing candles on the weekly, also two red candles followed by two green candles at the end of a bear trend of at least 3 to 4 candles for going long and vice versa for a short AND the convergence of all three ema's 3,8,54 and breakout to upside or downside. I find these produce long trends. The only draw back is the number of false breakouts before the biggy.
Of course one could stick to Bigalow's approach of just using any of the 12 MAJOR CANDLESTICK reversal patterns followed by a close above the T line for a long entry and vice versa for a short with the caveat of locking in profit if price is too far ahead of the T line.
No I missed AVO and also WSG. Was going to go in at 10p but too much procrastination and missed WSG's rise to 25p. Will have a look at BT. Presently losing 135 quid on a 1 quid short waiting for the reversal.
glita