This post is to highlight some of the good entry points for the Bull phase.
The best entry points are on declines to suitable level where buying emerges. One such entry points is the 50 SMA where many times the buyers enter in a big way and propel the indices to new highs.
One such example is recent bull phase in SPX.
The index has been in the bull phase from mid Nov. Whenever the index touched the 50 DMA it made a new high.
Highlighted are 3 points on 4 hr charts when the SPX made a new high. Most recent was y’day when it declined to 1256 levels but then closed at new yearly high. Now the catalyst was ISM report and Employment numbers but the charts were foretelling that this is a good entry point for the upmove.
Attached is the chart.
Well, the above trade is not as easy as many other factors need to be considered to differentiate good entry so that risk reward is favorable. Example is Gold decline in last 2 days.It failed to move up on touch of 50 SMA on daily charts.
I will make a detail system with proper back testing results for the above system
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