The 1st approach is more aggressive approach & involves buying or selling immediately the moment the price touches the moving average & assuming the long term trend will continue.
The advantage is you get the best possible entry price if the trend is strong & immediate. However you risk catching a falling knife. This may lead to significant losses if the trend reverses.
The 2nd approach of waiting for confirmation is a more prudent approach. This strategy involves waiting for a signal. This could be a specific candlestick pattern or bounce in momentum indicators, before entering the trade.
This approach reduces the risk & filters out the fakeouts or trend reversals. However you may miss the initial part of the move or get a worse entry price.
I prefer waiting for confirmation as fakeouts and Bull traps are common. Patience pays off.
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- 1PCΒ·12-21 23:25TOPNice Sharing π 1st approach is for the Kamikaze [Chuckle], 2nd approach is for the Kamikaze survived the 1st approach & returned with bandages π€ [LOL]. @JC888 @Barcode @DiAngel @Shyon @Sherniceθ»ε¬£ 2000 @Aqa2Report
- snappyzΒ·12-18TOPPatience is key. Confirmation avoids those nasty traps. Better safe than sorry! π‘1Report