4. Entries and Exits

Question 1

What are the four criteria for entry on the pattern (not ‘M’ or ‘W’) ?

Answer 1

1. Wait for price to retrace back to the 50 EMA on the one-hour
2. Draw lines from the peak to the EMA and a horizontal line across (see image)
3. Observe 3 or 4 candles back off the MA, this is them confirming the zone
4. If you want to enter on the “elite” entry point, where it is just bouncing off the EMA, you need confluence and experience to ensure price is not breaking through the to the other side

Note: the closer to the MA price is, the more information you’re going to have

Question 2

When you see the price cross the 5 and 13 EMA after a profitable move, what is the first thing you should you be thinking?

Answer 2

Exit now. That is your first sign of reversal and you should take it.

Question 3

When you see the price cross the 5 and 13 EMA after a profitable move, and you have exited upon this reversal sign, what question should occur?

Answer 3

Ask how far away from the 50 EMA are we?

If a decent snap back across has occurred and price is far enough from the EMA, then take a position going back in the opposite direction just as the MM is going to do.

Question 4

How do you determine whether they are going to touch the 50 EMA?

Answer 4

Drop down a timeframe - remember the 50/13 EMAs on the 1 hour are the 200/50 EMAs on the 15 minute