When a stock has a momentum burst of 3 to 5 days, it explodes quickly in a short time period. As a result of this the daylight between 10 MA and the price increases. So a stop based on MA will put lot of open profits in play.
As a general rule for 3 to 5 days swings using a MA of 10 day duration is not a smart idea.
5 comments:
Even a 5 Ma put lot of open profits in play.
Understood. So what’s your recommendation? It’s easy to say that you should be selling at the top in hindsight but how do you know that’s going to be the high in that burst?
Sell on 3rd day or profit targets after deep-diving average moves in a setup.
Got it. Day 2 as a member. I completely understand based on your strategy. Thanks for clarification!
The 18 ema on a 65 min chart equals the 3 ema on a daily chart and is something I use.
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