As shown, there are 2 things that will push it down. The MACD and the ADX. There is divergence in the MACD, therefore, there is already a ticking bomb to push it down. Also, in a book by Linda Bradford Raschke, we have a 10-bar divergence signal. The ADX is low, meaning that strong movement will be made, and with the MACD showiing lower highs than previous,...
Once the EMA's cross, price should roll up to the blue triangle area. This is a great area to short. It should then continue to roll down and touch the first target. Close out of 1/3 of your contracts. It should then press downward and try to touch T2, which is a good time to close out of another 1/3 of your contracts. The last 1/3 should be saved for T3. ...
I am looking at a long position here. The yellow line is the 110EMA and the orange is the 40EMA. As seen from previous 1 hour time charts, when these two cross, the price has strong movement in the direction of the reversal of the EMA's. This will probably come test the 40EMA again, and then head up for at least a 40 pip gain. If the first target is hit, close...