While it may look confusing, it is quite simple once you get the hang of it. Referring to the last chart, you can see previous trend lines that triggered. With this strategy, we need a rule that determines which lows and highs we should be using. To be consistent, we need a rules based approach to trading. If price breaks highs, it will trigger a trend direction of long as it breaks the 200 EMA. With this particular chart, given the size of the trigger candlestick, above highs may be a good place to consider. Where is your stop? As mentioned earlier, there are many possibilities. Within that 30 minutes, the trade is up $2 per share. With this chart, the last 30 minutes of this stock gave you your sell entry.
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