Traders newbie and veteran alike constantly berate themselves for “missing” great entries. One remedy for that is stalking.
I won’t explain it again here… have a look at that explanation page (and this example) if you’re unfamiliar.
Also check out these names trading close to the 200 day Exponential Moving Average. We personally know some traders who only trade setups against the 200 day EMA… They’re all position traders, but they do quite well using this technique, so it’s worth it for you to understand and be exposed to simple setups like this.
Here are a few names trading around their 200 day EMA.
- CNC – CNC is staging a hard bounce off its 200 EMA.
- HI — We would wait for a bit of a pullback from HI before joining the long side.
- MOH – MOH responding in classic form to the 200 EMA.
- NILE — The 200 EMA is just above $40 and both are providing good support.
- WGO – price responding to the 200 EMA and a support zone provided by previous congestion area.
I’m not suggesting these are guaranteed winners anymore than any other setup I present. However getting a good entry against the 200 EMA is a good start to any directional trade.