1 What is CTA Trading? 2 Types of CTA Trading Strategies 3 How does CTA Trading Strategy work? 4 CTA Trading Strategy 4.1 CTA Trend Filter Rules 4.2 CTA Trading Rules for Entries 4.3 CTA Trading Diversification 5 Final Words – CTA Strategy 1 What is CTA Trading? In finance, CTA is an abbreviation for Commodity Trading Advisor. A CTA is a professional money...
50sma determine trading bias. Price below 50sma bearish bias. Price above 50sma bullish bias. Short Entry Candle Close 1 - Red Colored Candle 2 - Price below 50sma 3 - B3 Subchart Red Long Entry Candle Close 1 - Green Colored Candle 2 - Price above 50sma 3 - B3 Subchart Green Stop Loss on the opposite side of 50 sma Take Profit you determine
This Price Action Flow Chart was provided by Jennifer Thornberg
Add to Chart 50sma Aroon - change color to green/red ATR 50sma Base Line Price above Long trades Price below Sell trades Aroon Crossover Entry Buy - Green above Red Sell - Red above Green ATR Money Management SL = 1.5 x ATR TP = 1 x ATR
Price is in between the 50 and 100 sma. Price can continue long to 100 sma which is the TP. Price can return to the 50 sma then: Continue long to the 100 sma which is the TP or continue short to the 800 sma which is the TP
The 50 and 100 sma are my guides for price movement on my charts. Price trends, ranges or consolidates. When price moves in between the 50 and 100 sma I call that my in side range. Price can move quickly through both or mostly it will consolidate. If I enter an inside range trade I do not expect to have price momentum going through that space. Also many times...