- A channel set to a length of 30 (normally 20)
- Two Hull moving averages, one set to 54 (line) and one set to 108 (dotted line)
I'll try to explain my strategic thinking through pictures, but please understand that risk management is everything. I like to deal in scattered limit orders rather than just buying at one exact price and selling at one exact price. A lot of people don't use limits nowadays, or even teach about how to trade them properly, and I think that's a crime. If you can understand the concept of "average price" rather than merely "price", then you're way more likely to make money in these markets.
Let's say you buy $100 worth of whatever at $0.50 each. It drops to $0.48, you buy another $100. And another $0.46, $0.44, two at $0.42, three at $0. 40 , and then the price rises. You start selling some at $0.45, then $0.46, a couple at $0.47, a few at $0.48... averages. It's incredibly important to understand this concept. I get so angry at YouTubers who teach singular entries and exits (haha).
A *really* important thing to understand is that you do not have to obey the trend. You're more likely to make money if you're on the right side of the trend, of course, but that doesn't mean you can't short on green candles and long on red ones. As long as you have a good grasp of risk management, you can make money even when your initial assessment was wrong.
Happy trading. :)
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.