50MA Trading Strategy - Potential Entry Point for Big Drop
Updated
Please comment below if you have any feedback and LIKE if you agree with the idea.
TYPE OF TRADE:
I am looking for a great setup that could form soon for a SHORT position.
CONDITIONS TO TRADE:
I will be looking for 2 specific conditions to enter into a short position
- This 2 year resistance holds and doesn't get broken...even by a wick.
- We close below the 50MA
Note: I have put 3 possible scenarios that could play out that would satisfy these conditions (don't look into the periods of them too much as I have drawn them roughly)
OTHER NOTES:
The reason why I am really excited about this potential trade is we are near the 2 year resistance and if we reject off it this could be the big move we have been looking for.
FUNDAMENTAL ANALYSIS:
- We have had a surge in stocks around the world but what worries me are issues of:
-Supply chains being disrupted
-Could trigger more bankruptcies
-COVID-19 cases rising
-This is the original catalyst that has caused the unsteadiness of the markets
-COVID-19 uncertainty
-Are we re-opening too soon...only time will tell
-Unemployment still rising
-What are people doing with their incomes?
-Housing prices and Banks health
-Nothing as of yet but the potential problem if housing drops and banks' security to people's loans becomes a risk for the banks.
I will continue to update this trade idea as we progress but please comment as I would like to hear peoples thoughts on my ideas.
Note: I have put a link to what my 50MA Trading Strategy is and what drawbacks and risks it has.
TYPE OF TRADE:
I am looking for a great setup that could form soon for a SHORT position.
CONDITIONS TO TRADE:
I will be looking for 2 specific conditions to enter into a short position
- This 2 year resistance holds and doesn't get broken...even by a wick.
- We close below the 50MA
Note: I have put 3 possible scenarios that could play out that would satisfy these conditions (don't look into the periods of them too much as I have drawn them roughly)
OTHER NOTES:
The reason why I am really excited about this potential trade is we are near the 2 year resistance and if we reject off it this could be the big move we have been looking for.
FUNDAMENTAL ANALYSIS:
- We have had a surge in stocks around the world but what worries me are issues of:
-Supply chains being disrupted
-Could trigger more bankruptcies
-COVID-19 cases rising
-This is the original catalyst that has caused the unsteadiness of the markets
-COVID-19 uncertainty
-Are we re-opening too soon...only time will tell
-Unemployment still rising
-What are people doing with their incomes?
-Housing prices and Banks health
-Nothing as of yet but the potential problem if housing drops and banks' security to people's loans becomes a risk for the banks.
I will continue to update this trade idea as we progress but please comment as I would like to hear peoples thoughts on my ideas.
Note: I have put a link to what my 50MA Trading Strategy is and what drawbacks and risks it has.
Comment
Have seen a bounce off the resistance trading zone area and we are now flirting with the 50MA will keep 1 eye on the charts.50MA is @ 9321 (as it doesn't update on the charts) currently
Comment
We have done our cross at this time and have 35 minutes until the candle close.Trade active
Signal has been confirmed and have entered trade with a tight stop. High chance we will get stopped out as we could be trending on the 50MA and then will have another go.Will keep you updated.
Trade closed: stop reached
I got stopped out of this trade so I will look for a bigger move from the 50MA to re-enter into.Comment
This is looking like a better entry point as the 50MA is deviating further away from the current close.Trade active
Have a 2nd entry point for a short again at 9443.Order cancelled
So as I have had 2 failed attempts at this trade. I am moving to the next part of the strategy that is now looking for a clean break from the 50MA as I believe have multiple points that it is acting as a support.
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