On the en daily chart at the arrowed points, the 5, 12, and 20 ma's ( all of exp on close ) have bunched up then carried on in the direction of the trend.
This tendency continuation is signaled from the arrowed candle. This all happens below the 50 ma ( easy close ).
The first and third arrowed candle's also close below an area of support, which also happens at a round amount. Just more confirmation.
I look at the 4 hr charts first, and if I see a potential trade I will check the greater tf's, to be certain that the trade is with the tendency, then trade off the 4hr or drop down to 1hr and search for the exact same ma pattern or a pin, ob, etc off a round amount, or s/r.
I know ma established trade's work well in trending, and aren't good in ranging mkt's. A little bit of discretion is involved. The ma's are only to help.
On the en chart I'll be seeing the 4hr, and perhaps the 1hr, around the 1.8000, searching for a short.
The ucad short I shot yesterday was placed at the close of the arrowed candle. The three ma's hadn't bunched up considerably, the 50 ma was still going up, like I said discretion is included.
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