ETHUSD 1D BEST SHORT TERM TRADING STRATEGY
Step #1: Wait For the Market to Make a New 20-Day High
The way you should count the highs is simple. Each time the market is making a daily high, you can start counting. The rule of thumb is you only count daily highs that are higher than the previous counted daily high.
Step #2: Wait For The Market to Break Below the 20-day EMA
For the success of our short term trading strategy, this step is very important. We don’t want to pick tops and bottoms. We feel more comfortable entering the market once the price confirms it’s ready to reverse.
Step #3: Enter A Short Position When We Break Below 20-Day EMA
As soon as you break below the 20-day exp. moving average, sell at the market. The combination of the 20-day high pattern and the 20-day exp. moving average is the secret to our powerful short term trading strategy. Incorporating the 20-day EMA in your day trading system is one of the best short-term trading tips you can receive.
Step #4: Place the Protective Stop Loss Above the Swing High Prior to the 20-day EMA Breakout
The best short-term trading strategy employs a very rigid stop loss method. The obvious place to “hide” your protective stop loss should be right above the most recent swing high prior to the 20-day EMA breakout. If the market breaks below the 20-day EMA, and it reverses and breaks above that swing high, this means trouble. It is reason enough to close the trade at a small loss.
Why? Because it signals the prevailing trend is still maturing and will resume. This is why you don’t want to be in the trade anymore. If you listen to the price action, this is the best short term trading tips the market can give you.
Step #5: Take Profit at The 50% Fibonacci Retracement of the Prevailing Up Trend
The logical place to take profits is at the 50% Fibonacci retracement. Normally, that’s the first real target from where the market can reverse. We don’t want to take our chances and risk losing more of our profits. So, we’ll liquidate the entire position here for a nice profit.
Note** The above was an example of a sell trade… Use the same rules – but in reverse – for a buy trade.
The way you should count the highs is simple. Each time the market is making a daily high, you can start counting. The rule of thumb is you only count daily highs that are higher than the previous counted daily high.
Step #2: Wait For The Market to Break Below the 20-day EMA
For the success of our short term trading strategy, this step is very important. We don’t want to pick tops and bottoms. We feel more comfortable entering the market once the price confirms it’s ready to reverse.
Step #3: Enter A Short Position When We Break Below 20-Day EMA
As soon as you break below the 20-day exp. moving average, sell at the market. The combination of the 20-day high pattern and the 20-day exp. moving average is the secret to our powerful short term trading strategy. Incorporating the 20-day EMA in your day trading system is one of the best short-term trading tips you can receive.
Step #4: Place the Protective Stop Loss Above the Swing High Prior to the 20-day EMA Breakout
The best short-term trading strategy employs a very rigid stop loss method. The obvious place to “hide” your protective stop loss should be right above the most recent swing high prior to the 20-day EMA breakout. If the market breaks below the 20-day EMA, and it reverses and breaks above that swing high, this means trouble. It is reason enough to close the trade at a small loss.
Why? Because it signals the prevailing trend is still maturing and will resume. This is why you don’t want to be in the trade anymore. If you listen to the price action, this is the best short term trading tips the market can give you.
Step #5: Take Profit at The 50% Fibonacci Retracement of the Prevailing Up Trend
The logical place to take profits is at the 50% Fibonacci retracement. Normally, that’s the first real target from where the market can reverse. We don’t want to take our chances and risk losing more of our profits. So, we’ll liquidate the entire position here for a nice profit.
Note** The above was an example of a sell trade… Use the same rules – but in reverse – for a buy trade.
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