Stock charts with 50 % R Pullback setup
My rules for this Setup
- Identify a Up or down swing.Wait for a pullback thro 50 sma.The distance below and above 50 sma to be more or less equal.
- Draw a Median Line thro the pivots of the pullback swing.
- If downsloping Pitchfork then Short or vice versa.
- When price crosses 50 % level of pullback swing and 50 sma, Sell in downsloping Pitchfork / Buy in upsloping pitchfork.
- Stoploss level will be at bar high above 50 sma level
- Risk/ reward to be calculated before entry.1:2.5 -3 minimum to be maintained.
- Target levels will be Target1- previous swing low or vice versa,Target 2 will be meeting point at Median Line and further down at LML.
- To trail profits , Stoploss of close above / below 10 ema , (or ) 5 / 20 ema crossover to be used.