So every at least twice a month I try to quickly scout markets for stand out trades. Yet I have several tricks of this trade but this week since we are in a new month I’d decided to scout for breakouts on the higher timeframes preferred monthly as these breakouts are trade worthy.
Alright here’s the method to this set up and it don’t happen often but when it do that pair goes on the watchlist.
So on chfj. Weekly we see the 200ma and the 50ma aligned in the same direction and under the poc.
So I was scouting the market for just this n found it.
Now let understand what this means. What to expect and when to enter the market as entrances are how ppl fail..
So this set up equals breakout.
What the averages are doing is becoming a spring for price.
Price will drop n pushing deeply down into the averages as they absorb the impact and reverse it upwards.
Price will break the low of the averages only to be pushed upward with more mom. Thus price will rise quickly breaking n not even retesting the poc. Price will set a new high.
So the structure looks like this with the middle part being the correction where volume is added before the move..
How to trade and enter
We wait for the break low of the 200ma after the 50ma both together will pull price and when price start this we enter our sl is the low of the 200ma. We ride this wave up to heaven
HOW TO TRADE LIKE THEM-
Alright here’s the method to this set up and it don’t happen often but when it do that pair goes on the watchlist.
So on chfj. Weekly we see the 200ma and the 50ma aligned in the same direction and under the poc.
So I was scouting the market for just this n found it.
Now let understand what this means. What to expect and when to enter the market as entrances are how ppl fail..
So this set up equals breakout.
What the averages are doing is becoming a spring for price.
Price will drop n pushing deeply down into the averages as they absorb the impact and reverse it upwards.
Price will break the low of the averages only to be pushed upward with more mom. Thus price will rise quickly breaking n not even retesting the poc. Price will set a new high.
So the structure looks like this with the middle part being the correction where volume is added before the move..
How to trade and enter
We wait for the break low of the 200ma after the 50ma both together will pull price and when price start this we enter our sl is the low of the 200ma. We ride this wave up to heaven
HOW TO TRADE LIKE THEM-