I. Analysis 1. Stock in a healthy downtrend since beg Jan - we have a short bias 2. 50MA are has been tested twice as resistance area and held - we have a value zone 3. Bearish engulfing at 50MA area - we have an entry trigger
Simple trade, we have identified a downtrend leading to start looking for short opporutnities. We have identified a value zone, the 50MA. We have an entry trigger at this area.
II. Trade 1. Go short next candle 2. SL 1 ATR abive 50 MA - use a trailing SL for trend following 3. TP at next buying pressure signs for swing trading or when price crosses and holds above 50MA for trend following