57# Price Action with 21 SMA

Price action as key factor


Submit bu Buddy 14/12/2013


Price Actionis a key factor in determining if we are going to enter a trade or not.

Although the colored 21 SMA is an easy way to quickly see the current general direction of price,

Price Action ‐ due to a better overall picture so to speak ‐ further helps to confirm the direction of the trade.


For instance, as in the example below

in the case of a SELL we should look for recent Lower High(s) and/or Lower Low(s);

best if both occur but one of the two usually suffices to be on our side.

I repeat, we DO NOT always need both to occur otherwise we miss out on many good trades!!

A Double Top (possibly implying the end of an Upward Movement) also helps to confirm a possible SELL Entry.

Price Action with 21 SMA
Price Action with 21 SMA


For BUY set‐ups with respect to Price Action:

We look for Higher High(s) and/or Higher Low(s) to confirm a possible Entry, as viewed in the example below

A Double Bottom is another way of determiningthe end of a Downward Movement

which may also be usefulin helping to confirm a possible buy entry.

Price action with 21 SMA

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Price Action with 21 SMA (Template and indictors)
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