Move Back the Moving Averages -
Markets tend up above the MA's and down below the MA's. This is not an exact science. Meaning, market can trade around the MA's.
What is the trade?
If prices are are above the moving average, we would expect the prices to move back down to the moving average.
When this price action happens at the same time of an expect cycle high or low, and the Alpha Indicators are near their buy / sell zones, then the trade model is to enter near the MA in the direction of the current trend.
What happens if the price level moves past the moving averages?
This initially for the first bar is what we call a FAIL and this is acceptable and in fact happens many times. For example, if the market is moving up and it is due for a TC Low, then all prices fall below the 15 moving average to create the TC Low.
How to enter?
Place an order at the MA price level, or reach above or below the MA to Go Fish and try to get a price advantage. But before placing the entry order(s), consider the current cycle count. If the market is only 1 bar down for example into the cycle count, consider that it may have more room to go. This happens a lot of reports that come out.
The MA will be moving on each new bar. What may have been a MA entry price level will change on each new bar.
Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.