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    6.1 50sma + Price Strategy

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    farzadsafar2018
    This document outlines rules for a trading strategy that uses the 50-period simple moving average (SMA) and price patterns. It describes analytical rules to identify price patterns and wait for candles to cross above or below the 50 SMA. It provides entry rules to enter trades based on the analysis and re-enter if price retraces and finds support on the 50 SMA. Exit rules include placing stop losses below or above the 50 SMA and taking profits at 2R. Trade management rules state to take stop losses to breakeven when 1R profit is reached.

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    6.1 50sma + Price Strategy

    Uploaded by

    farzadsafar2018
    9 views1 page
    This document outlines rules for a trading strategy that uses the 50-period simple moving average (SMA) and price patterns. It describes analytical rules to identify price patterns and wait for candles to cross above or below the 50 SMA. It provides entry rules to enter trades based on the analysis and re-enter if price retraces and finds support on the 50 SMA. Exit rules include placing stop losses below or above the 50 SMA and taking profits at 2R. Trade management rules state to take stop losses to breakeven when 1R profit is reached.

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    This document outlines rules for a trading strategy that uses the 50-period simple moving average (SMA) and price patterns. It describes analytical rules to identify price patterns and wait for candles to cross above or below the 50 SMA. It provides entry rules to enter trades based on the analysis and re-enter if price retraces and finds support on the 50 SMA. Exit rules include placing stop losses below or above the 50 SMA and taking profits at 2R. Trade management rules state to take stop losses to breakeven when 1R profit is reached.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    9 views1 page

    6.1 50sma + Price Strategy

    Uploaded by

    farzadsafar2018
    This document outlines rules for a trading strategy that uses the 50-period simple moving average (SMA) and price patterns. It describes analytical rules to identify price patterns and wait for candles to cross above or below the 50 SMA. It provides entry rules to enter trades based on the analysis and re-enter if price retraces and finds support on the 50 SMA. Exit rules include placing stop losses below or above the 50 SMA and taking profits at 2R. Trade management rules state to take stop losses to breakeven when 1R profit is reached.

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    © All Rights Reserved
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    of 1

    50 SMA + PRICE STRATEGY

    ANALYTICAL RULES

    1. Identify a price pattern – (mostly double/triple tops and bottoms or heads/inverted heads and
    shoulders).
    2. Wait for candles to cross above (for BUY) or below (for SELL) the 50 SMA.
    3. Wait for the next candle to complete above (for BUY) or below (for SELL) the 50 SMA, without
    the body touching the 50 SMA.
    4. Analysis and execution of trades should be done on the same timeframe.

    ENTRY RULES

    1. Enter a BUY or SELL trade depending on the existing analysis.


    2. If you observe a clear trend in your direction and observe price retracing to find support
    on the 50 SMA, re-enter in that same direction after the candles find support on the 50
    SMA, and close above (for BUY) or below (for SELL) it with a candlestick trend
    continuation pattern at a Fibonacci level.
    3. Only enter additional trades if present trades are at zero risk.

    EXIT RULES

    1. Place stop loss below (for BUY) or above (for SELL) the 50 SMA and support and resistance levels
    respectively.
    2. Take profits should be at 2R.

    TRADE MANAGEMENT RULES

    1. Take stop loss to breakeven when 1R is reached in profits.

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