Moment-by-Moment (MbM) Trading strategy
- Thread starter rajesheck
- Start date
This is a valid entry for bullish reversal as the second resistance level is below the first one and also proportionate. The green candle formation marks valid entry.
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Not a valid entry for bullish trend as the supports are at same levels. A valid entry needs the second support level to be above the first one as in this chart.
Step #4
Exit a buy when two consequent resistance forecasts a loss.
Exit a short sell when two consequent support forecasts a loss.
In the case of chart you last posted, the valid exit is marked by the second support forming above the first one and proceed to cross the peak/high touched by the first support. (see the chart attached in this post)
Important : One exception to the exit rule is to make an emergency exit at any given point of time when there is a possible loss. See the chart example for emergency exit in my previous post. In other words if the take off fails then simply exit. This strategy has a high success rate of take off.
One more exception is if the price is stuck in a new range (after your entry) then exit. A new range means take off failed.
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Trading is all about your chart, not the underlying instrument.
Whether you are trading on forex, commodities or stocks, the chart is the real king, not the underlying instruments.
Important: If your script is a shadow of some other major script, then I would strongly suggest you to trade on the major script, because independent script means reliability which leads to more profits.
This strategy works best on all such major and independent scripts.
Whether you are trading on forex, commodities or stocks, the chart is the real king, not the underlying instruments.
Important: If your script is a shadow of some other major script, then I would strongly suggest you to trade on the major script, because independent script means reliability which leads to more profits.
This strategy works best on all such major and independent scripts.
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Yes. A strong signal that the take off failed.
Note : Since our entry is purely momentum based and clubbed with the 0.40% trend strength, the chances of some sudden spike, in price movement, forcing a loss is very rare. This chart is good example for that.
The idea of this strategy is to arrest all possible losses and end up making money. Of course achieving it is not a joke ! It needs a very matured strategy and high level of discipline while trading.
Side notes: This is a range situation. And our exit signal confirms that.
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