Stockbee: Should you use 10 MA stop for short term swing

Should you use 10 MA stop for short term swing

April 7, 2023

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 :

Dellis hackersApr 11, 2023, 5:58:00 PM
Even a 5 Ma put lot of open profits in play.
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TomApr 11, 2023, 8:06:00 PM
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?
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Pradeep BondeApr 11, 2023, 8:29:00 PM
Sell on 3rd day or profit targets after deep-diving average moves in a setup.
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TomApr 12, 2023, 11:48:00 AM
Got it. Day 2 as a member. I completely understand based on your strategy. Thanks for clarification!
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SteveDApr 16, 2023, 8:11:00 PM
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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