I might suggest that you first determine your setup . . . perhaps using Mâs description of what heâs looking for. When that criteria is met, figure out how you will enter. There are many ways to enter . . . to buy, maybe you set a limit order two ticks above the sma line for a retracement buy, maybe you wait for price bars to stop making new lows and enter with a buy stop above that bar, maybe you wait for a bar to close ABOVE the prior bar and finesse a limit order when you see this. There are some great price action threads that cover a lot of entry techniques . . . itâs all about price action, not the MACD . . . it just gives you a fairly rigid setup to know when price action should be paid attention to.
Why do I mention this? Because figuring out what entry technique âsuits your styleâ is key and is why you always hear this like a broken record. You may find that you like waiting for a significant retracement as long as the MACD is still crossed to the upside, you may find that you like being pulled into a trade using a buy stop order, you may find that reading the tape when you see your setup allows you to get a feel for price action in real time and control your entry via a limit order.
Which way works best? . . . none of them and all of them. Exit strategy is probably more important. Again â to sell you can wait for the price to go below or close below the 9sma, you can wait for a MACD cross in the opposite direction, you can wait for a bar to close below a prior bar, you can use a three-bar trailing stop, you can set targets based on key support. Pick something that makes sense to you based on your observations and go with it. None of these are any worse than others (imo). The market is a moving target, so go at it with a fixed frame of reference and don't change your approach every two seconds â ie, âitâs hard to hit a moving object if youâre on a rollercoaster yourself.â
Or heck, just listen to MâSet.
Good trading.
