Simit Patel

I wanted to post the charts that led to me to place my most recent trade on September 5, which I am still in.

Below is a weekly chart I used to help identify a strong support level. The area highlighted is a 38.2 Fibonacci level.



I look to the daily chart to confirm that support level, and to wait for the moving averages to align downward as confirmation that the market is trending downward.



I enter on a break of support at 4321. One thing I forgot to include in the chart is the RSI indicator, which I used to check if there was RSI divergence on the break of support. There was no divergence, so I entered.

I'll exit portions of the position once the market begins to retrace and the moving averages begin to reverse.

Thoughts? Comments?

Jerry

Hello Simit,

I understand this trade was way back in September....but while strolling thru the site...I noticed you are useing 4 moving averages...but I can quite read which ones they are.....can you let me/us know which moving averages you are useing and are they simple or exponetial..>?????...thanks Jerry

Simit Patel

hey Jerry,

in that chart, i used the 10, 20, 50, and 100 EMA. however, in light of recent market volatility, i'm using 5, 10, 20, and 50 -- i've found the 100 to be too slow and kinda irrelevant in these market conditions, at least for my trading style.

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Jerry

yes...very good....thanks.....Jerry