Posted by Tom C.
I will be making a few posts while Trader-X is on vacation. A few things about my trading:
1.) I make trades on 15, 10, and 5-minute charts.
2.) I still use Moving Averages as guides. I plot the 8, 13, and 34EMA.
AMZN was one of my better trades today. I love this formation - it is my "bread and butter" to borrow an old X term. It gapped up and then sold off and bottomed. About Noon it took out the 50% retracement of the morning's high to low, and then consolidated. You might look at the 4-5 bar consolidation and see a triangle.
My trigger bar is marked with a yellow arrow. Note how the 8 period EMA (white line) moves up and "pushes" price higher; all three MAs were moving up at a nice angle.
My target was the Fibonacci Extension and it was hit 8 bars later.
Trading 27-April-2016 (+ $66)
22 hours ago