Recently I've been adding the 9-day EMA (exponential moving average) study to my charts, which is the blue line, and using it in combination with the VWAP (volume weighted average price), which is the red line. I've noticed that in a lot of charts there is usually a strong move up after the 9EMA crosses over the VWAP. However, this does not mean that I should rely on a single indicator to determine an entry. I will use this along with other technical info in conjunction to give me the best chance at a successful trade.
This stock $EXEL had lighter volume today, I was actually first watching it to short near 6, but one of the rules I try to follow is dont short a stock thats still grinding up above VWAP after 11 am and this is a good example of why. I was too short biased and failed to see the opp for a long position here, first when it dipped near 5.85 and then when it based around 6 again.
No comments:
Post a Comment