Engulfing Candle Indicator with EMA Trading Strategy
- August 16, 2023
The second component is the use of trendlines to confirm the reversal. A trendline is a straight line that connects two or more price points and represents either support or resistance for the asset’s price. A rule of thumb is to make sure your winners are at least one-and-one-half times as big as your losers; two times bigger is even better. Therefore, measure the distance between your entry point and where you placed the stop-loss. Your target price should be at least one-and-one-half times greater than that, or 45 cents. Therefore, hold the trade for at least a 45-cent gain to...
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