here is a copy of a post I just did on xso; may interest someone here:
I have asked the BT if there is any interest in the subject:
"
Buying is always the easy part - it is the selling that is hard and tricky."
There has been some “limited” interest from the BT (a few likes) but I have picked up on @64ehehcomments re “CMA and Moving averages (MA).”
What follows is a long post dominated by charts; these days charts take me a few seconds to throw up a few line or indicators, screen shot, and scribble a few thought. My way of telling a story I guess. Then putting out is world of public opinion does 2 things:
- Opens work to comment/question.
- Forms a record of what I am thinking.
Using (E)MA’s to manage a trade
Firstly if anyone does not know the basis of an MA, or Expontial Moving averages (EMA)s or their link to MACD …. Google it before you keep reading.
As Oscar says …. “too the charts”
Now to @64 comment from previous post:
Go back and have a look at the daily chart of CDA I pointed out the other day. ( a good example of using a 30/50 ema to keep you in the trade as 7/14 ema just won’t work on a large time frame). But let’ just say you got in at that flat topped pattern break at $2.10. Your stop loss and trailing stop would be around $2.20/25 or something close, as you don’t want the pattern to fail on you. But now, say you were in the trade from a year ago around 60 cents…...your stop has a lot more flexibility and could be around $1.90 or so.
To the chart:
this chart just shows the form of a report that PRT produces based on previous trade test in case of interest to anyone??
CONCLUSION, the very simple process of using (E )MA’s is a very useful risk management tool and without doubt a good process to look at for exit management.
As always happy for any critique, queries or questions.
Thasts enough, time for a bike ride ....
cheers g
(20min delay)