A Simple Powerful Stock Day Trading Tip Using Multiple Time Frames
Why is this pattern so effective in picking out great trades
? In the case of long trades, significant new buying activity would have to occur in the higher time frames for the shorter term 20-period moving average to cross above the longer-term 200-period moving average. A moving average crossover on two different higher time frames is clear and compelling evidence that a bullish change in sentiment has occurred. Apply the reverse logic for short trades.
A Simple Powerful Stock Day Trading Tip Using Multiple Time Frames