yes but it's also a lot of visual feel that you start to get a
'feel' for after looking at enough of them that is hard to
describe. That's why it's important that you look at example after
example, start doing them.
however - remember you NEED a trigger! you don't just
buy or short because you get an MA pinch, look for a trigger like a
doji candle something that like where you can have a tight stop and
a logical trigger off of
so if you get an MA pinch, if you see a trigger you can
take the trade with a tight stop and entry and if it doesn't work
it doesn't matter because you had a tight stop
for example see image. you see the ribbons pinch, you look for a
trigger, at times as you know the MA ribbons may simply cross when
they pinch instead of reversing back in the trend. many times
you won't get a trigger and the condition will go away. You
need a trigger, no trigger no trade. And like I said you try to
time your triggers so that if you get in and stopped out, it's
tiny. Here's a zoomed in view of that chart
SPX 5 min
Posted by matt on 6th of Mar 2020 at 11:28 am
$SPX - Chart Link - was another easy MA pinch short there
Update: SPX 5 min
Posted by matt on 6th of Mar 2020 at 01:12 pm
$SPX - Chart Link - price struggling at the 50 SMA on the 5 min
Matt - Any particular keys
Posted by shecar on 6th of Mar 2020 at 11:57 am
Matt - Any particular keys to deciphering whether it is a pinch vs starting to cross back up?
yes but it's also a
Posted by matt on 6th of Mar 2020 at 12:04 pm
yes but it's also a lot of visual feel that you start to get a 'feel' for after looking at enough of them that is hard to describe. That's why it's important that you look at example after example, start doing them.
however - remember you NEED a trigger! you don't just buy or short because you get an MA pinch, look for a trigger like a doji candle something that like where you can have a tight stop and a logical trigger off of
so if you get an MA pinch, if you see a trigger you can take the trade with a tight stop and entry and if it doesn't work it doesn't matter because you had a tight stop
for example see image. you
Posted by matt on 6th of Mar 2020 at 12:11 pm
for example see image. you see the ribbons pinch, you look for a trigger, at times as you know the MA ribbons may simply cross when they pinch instead of reversing back in the trend. many times you won't get a trigger and the condition will go away. You need a trigger, no trigger no trade. And like I said you try to time your triggers so that if you get in and stopped out, it's tiny. Here's a zoomed in view of that chart
Helpful, thank you.
Posted by shecar on 6th of Mar 2020 at 02:53 pm
Helpful, thank you.