This isn’t my long term system for when to be long or short, but some use this really easy to follow exponential moving average system to determine what side of the market to be on. A simple 50ema average crossing of the 200ema has been very reliable although very slow to catch the direction of the trend. Ever since the long term trend went bullish the 10ema hasn’t been this close to crossing through the 200ema, suggesting this downturn could have some teeth.
Since I bought long on Friday this is somewhat worrisome and should we have another down day tomorrow, I have to believe my system will take me out of the trade. Right now I’m essentially flat on the trade, and I’m somewhat concerned that a gap down could occur and I’ll cross that bridge when I get to it. I almost closed the trade after hours, but when you utilize a system to trade it’s important to follow that system and not trade based on emotions.
