Understanding Trend line Fractal Formation using SMA as a follow up Trade.


This strategy is guiding principle for following trade. We make use of 10 SMA, 40 SMA and 200 SMA.
The Trendline fractal is developed by price support levels which must originate from a source which is usually end of defined wave. We may use wave 1 beginning point or wave 2 to form the fractal.
The simple rule in following the fractal formation is that 40 SMA will cross a Trendline before 10 SMA. If a correction is taking place for instance in a bullish market, we find the support and then judge the 10 and SMA relationship in respect to the Trendline. If the correction is normal, we plot new Trendline on the support and follow price. Please click on the link to continue readingUnderstanding Trend line Fractal Formation using SMA as a follow up Trade

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