3 Profitable 200 Moving Average Strategies (start trading these today...)
Published: 2020-11-14
Status:
Available
|
Analyzed
Published: 2020-11-14
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
A specific trading strategy is outlined: price must be below the 200 MA and then pull back to touch the 50 MA to be considered a valid pullback.
"I'm waiting for price to be under the 200 moving average I'm then waiting for price to pull back while under that 200 moving average to at least touch the 50 period moving average and that is when I considered that I have a pullback."
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Entry for a trading strategy requires a new low, price under the 200 MA, a pullback to the 50 MA, and then a specific candlestick or price action pattern on lower timeframes.
"I'm waiting on a new low out of price Then I'm waiting while price obviously is under the 200 moving average then I'm waiting on that pullback to the 50 and after I get the pullback to the 50 I'm waiting on a certain candlestick pattern or a certain price action pattern on lower time frames to enter"
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After an initial entry, a trader should not re-enter until new lows are made and the 50 EMA is touched again, or new lows are broken entirely.
"I do not get to enter again until we either break into new lows or break into new lows and then get another touch of the 50 ema or the 50 period moving average"
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After a successful entry and a push to lower lows, a new pullback can be waited for, potentially leading to another trading opportunity.
"we have a market that's pushing down right as we push down let's say we got an entry on this shooting star we push down again we got lower lows so now I can wait for another pullback"
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A trader should not re-enter a trade until the market either breaks the previous low or moves above the 200 MA, indicating a new uptrend.
"I cannot enter again until the market either breaks this low or moves into a new uptrend past our 200 period moving average"
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For a bullish pullback trade, wait for the market to touch the 50 MA and then form a hammer candlestick or other buying pressure pattern on lower timeframes.
"in the bullish example I'd be waiting on the market to pull down enough to at least touch the 50 period moving average and then give me a hammer looking candle kind of like this one is some type of buying pressure whether that be a candlestick pattern or a price action pattern on lower time frames"
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In a bullish trend, look for new highs, pullbacks that reach the 50 EMA, and then an entry signal.
"we're waiting on the market to create new highs new pullbacks that touch the 50 ema and then give us an entry reason"
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For breakout trades, mark the low of consolidation with a horizontal line and wait for price to touch it and then show at least two green candles pushing up.
"every low that's created like this one here after that low is created I'll put a horizontal line on the bodies of that low what I'm waiting on is price to touch that horizontal line and give me at least two green candles pushing up"
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When trading breakouts, draw horizontal lines on the lowest bodies of consolidation, not wicks, and wait for a breakout candle, pullback, and continuation.
"I would keep my line on the lowest bodies not on the lowest wick but on the lowest bodies where I originally have my line at right now and I would wait on that breakout candle and a pullback and then continuation of that trade"
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A short breakout trade is initiated when price breaks and closes below a horizontal line drawn on the bodies of previous lows, with a stop loss above and a target set.
"we have our horizontal line on the bodies of those lows we see that they get hit once twice and then broken and closed below so at this point I would have an entry there stop loss above there and a target set accordingly"
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In bullish consolidation, look for breakout candles after the next high. It's acknowledged that some trades will be losing trades.
"we have a high then we have consolidation after this next high our breakout candles right here and this was a losing trade but guess what that's totally fine"
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The 200 MA indicates the direction for breakout trades. Bullish consolidation requires two touched highs, while bearish consolidation requires at least two touched lows.
"using this moving average to tell me the direction I need to be taking those breakout trades and using the set in stone rules of needing two highs to be touched to consider it bullish consolidation waiting on the breakout or at least two lows or more to be touched to consider it a bearish or shorting breakout to the downside"
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A strategy involves looking for double tops. A valid double top occurs after a push up, a pullback, and then another push up to the same level, followed by a move to the downside.
"we're gonna be waiting on things like double tops which you can see right here one top two top the reason that's classified as a double top we have a push up push back down double top market moves to the downside"
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For double top patterns, confirm with a subsequent red candle to indicate bearish momentum. For double bottoms, look for a green candle to show bullish momentum.
"the only advice i would have for this is to make sure your double tops at least have a red candle afterwards because you want to see bearish momentum coming after the double top so we're looking for a double top with a red candle or a double bottom with a green candle"
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A bullish price action strategy involves identifying a double bottom during a pullback after new highs, confirmed by a green candle indicating momentum, leading to a long trade.
"here we have a bullish example the market pushing into new highs pulling back on this pullback we want to see a price action pattern what price action pattern is that it is going to be a double bottom that has a green candle after it to show momentum and then we take the market long"
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For support and resistance trades near the 200 MA, look for a market trending above the 200 MA, pulling back to it, and then checking historical structure levels to the left.
"we have a market that pushed up starts to trend above the 200 moving average pulls back to that 200 moving average and then what do we do we look left to see is that in a major level of structure"
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When a market crosses above the 200 MA, there's a high probability of either consolidation or a reversal.
"if a market makes it all the way to and crosses above the 200 moving average there's a pretty good chance that we're going to see either consolidation or we're going to see this market reverse"
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For reversal signals, wait for the 200 MA to be crossed, and then observe at least five candles that do not touch the moving average.
"I like to wait on the cross of the 200 moving average this would be considered the cross of the 200 moving average I want to see that at least five candles do not touch the moving average at all"
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After five candles don't touch the 200 MA, wait for a pullback to the 200 MA, a candlestick pattern, then enter with a stop loss below the swing low and a target at resistance.
"after I have at least five candles that do not touch the moving average I'm waiting on the market to pull back to the 200 moving average and produce a candlestick pattern if that happens I'm taking the entry on that candlestick pattern with a stop loss below the swing low and a target back up at resistance"
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For a bearish reversal strategy, identify a market previously in an uptrend that breaks below the 200 MA, and then start counting candles that do not touch the moving average.
"I'd be looking for the market that was previously in an uptrend to now break below the 200 moving average once that happens I start counting candles as they stop touching the moving average"
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After five candles fail to touch the 200 MA, wait for a pullback to the 200 MA and a bearish candlestick pattern like a shooting star.
"as soon as I get five candles I'm waiting on a pullback to the 200 moving average this pullback must touch the 200 moving average and then I'm waiting on a candlestick pattern like this shooting star"
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A prerequisite for a bullish reversal signal is that the market was previously in a downtrend with significant space between price and the 200 MA over a sustained period.
"the market needs to previously have been in a downtrend ... and I want to see that the market has a lot of space between price and the 200 moving average for a long period of time"
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When the market crosses the 200 MA for a bullish reversal, if fewer than five candles follow without touching the MA, the trade cannot be taken, and the process restarts.
"I have a market that crosses above the 200 moving average here we've crossed but we only have one two three candles and then we touch the 200 here so I can't take a trade there and the process starts over"
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Once five candles have passed without touching the 200 MA after a cross, wait for the market to touch the 200 MA and a bullish candlestick pattern like a close above candle.
"now we have one two three four five so now I can wait on the market to touch the 200 and give me a candlestick pattern like this close above candle"
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A personal trading preference is to use a 1.4 to 1 risk-reward ratio regardless of structure levels.
"normally no matter where structure is just use a 1.4 to 1 risk reward"
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