Trading Setup #6 Williams R%(72) + SMA 100

in #trading7 years ago (edited)

Hi, been a long time since I posted a trading setup. If you want to have a look at the other 5 you really have to go back in time, lol. I'll repost them one day, since I think I did a poor job of explaining them better. This will be the last one I talk about, since these are the only ones I've used so far.

Williams R%(72) + SMA 100

What it does, is confirm the start of a new trend, after an initial movement.
A candle closes above the simple moving average (100 periods), set your buy order to the break of the high of that candle.
Williamos R%, 72 periods, should be above the -50 line.williams.jpg
You can see in the image there was an entry point before the one I highlighted. Don't sell if the price goes down like that, wait also for the confirmation candle to get out of the trade. Also the Williams r% below the -50 line.

Work with Support and resistences, any other indicator of your preference, to set your take profit and stop.
The idea is to get out using the inverse strategy, but sometimes that is not optimal. So backtest this using some of your own ideas.

This is one of the best Trading setups I ever came across. I hope you enjoyed this, I tryed to make a simple post, easy to understand, and not complicated much with alot of ideas and images. Like I always said in this "trading setups" the most important thing in using any model, fundamental, technical analysis or both, is to backtest it in the instrument you want to trade. Get your own conclusions, add your own ideas, and backtest it alla gain, just to make sure. Then you can trade with it, and if your risk management is right, you won't just make a profit, you'll get rich...not over night thou. :P

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