$C rossover Alert: Bullish EMA Cross Signals Momentum Shift
The Setup: Moving Average Crossover
Signal:9-period Exponential Moving Average (EMA) crossing above the 21-priod EMA on the 1-hour chart.
This indicates:A potential shift from a downtrend/consolidation to a new uptrend.
Action Plan:
· Entry: On a retest of the 9 EMA after the initial crossover.
· Stop Loss: Place just below the recent swing low. "I use a stop loss on every trade. ALWAYS." - Day Trading Veteran.
· Take Profit (TP) 1: At 1.5x your risk (Reward:Risk = 1.5:1).
· Take Profit (TP) 2: At 2.5x your risk.
· Take Profit (TP) 3: Trail your stop loss to capture extended trends.
Trader's Edge: Why This Works
· High Probability: This is one of the best technical setups for confirming a trend change.
· Risk Management First: A veteran trader with 20 years of experience insists on a minimum 1.5:1 reward-to-risk ratio and stresses that controlling daily losses is a key to success.
· The Big Picture: As legendary trader George Soros put it, "It’s not whether you’re right or wrong that’s important, it’s how much money you make when you’re right and how much you lose when you’re wrong." This setup helps you manage that equation.
Crucial Reminder Before You Trade:
This is aspeculative short-term strategy. The market is volatile, and even good setups fail. 71% of retail client accounts lose money trading CFDs with one major provider. Never risk more than 1-2% of your capital on a single trade.
#TradingSetup #DayTrading #TechnicalAnalysis #Forex
#Stocks #RiskManagement #TraderMindset
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How would you like to proceed?
· If you want to explore the specific markets (like Forex or crypto) where this strategy is commonly used, I can provide more details.
· If you're interested in other high-probability setups like the "Bollinger Band Squeeze" or "Support & Resistance Flip," I can outline those next.