
Moving Average Gap Bar Strategy by Al Brooks, the author of 'Trading Price Action Reversals'
27 May 2015, 18:11

0
3 124
The basic elements of the strategy are as follows:
1. Identify a market that is in a bear trend on the 5 minute chart
2. Wait for a retracement in which the low of latest candle is above the 20 EMA
3. Go short, targeting the low of the day.
1. Identify a market that is in a bear trend on the 5 minute chart
2. Wait for a retracement in which the low of latest candle is above the 20 EMA
3. Go short, targeting the low of the day.
To be clear, Brooks' approach to price action trading is much more thorough; this strategy is just one tool in his arsenal.
“If you trade Countertrend, you are gambling, and although you will
often win and have fun, the math is against you, and you will slowly but
surely go broke. Countertrend setups in strong trends almost always
fail and become great With Trend setups..."
-Al Brooks, Trading Price Action Bar By Bar