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Please edu advancetradingsignals


misalto

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As always, these vendors find "the trend" by using the Average True Range. Just be careful with their defaults. An ATR multiplier as large as 5 can and will make anything look like "green buy" / "red sell" and you could still get chewed up in chop. Of course, their sample charts will ALWAYS show you great trending markets (where just about everything works anyway).

 

You would swear that all these vendors think we were born yesterday.

 

What these vendors won't tell you is a simple fact:

 

In a day trading trend, you get bounces off of either a 9 period or 20 period moving average, depending upon the strength / volatility. That's where you can enter with lower risk of getting stopped out and you don't need anything else to confirm. You'll also notice that you won't typically get a price close to the opposite side of the 20 ema (by much) if the trend is to continue (first 2 trend bounces). Just main tendencies, no one knows what's going to happen next. You only need a 50/50 chance of being right and the edge is maintained over the longer term by having your target more than your stop.

 

For example, the NQ e-mini has GREAT volatility. Look at ANY morning session with a 1 min chart and a 20 ema. Look how well price holds the 20 ema in trends on the first 2 bounces with low risk / high reward. You don't need to be right more than 50% to survive long-term on that. And look at the 9 wma getting tapped a few times as well and price holding above/below it in the strongest of trends. You're picking a point in real-time to take a trade. It doesn't matter if the point you chose is where an average price over time was and it certainly won't increase your odds of profitability if you wait for a bounce to start before you take the trade because that bounce could easily turn right around on you and taking the non-hesitating place was safe-er in that case.

Edited by lbf4223
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