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Higher TimeFrame Trading
Higher Timeframes and the Ema 200 Take note that if on a higher timechart the price has drifted or distanced itself too far from the Ema 200, then an eye must be kept on the price for a possible reversal towards the Ema 200.
Though this may sound a bit contradictory to my trading strategy, the reality of all this is that, (as can be seen in the chart on the left) price can and will drift away from the shores of the Ema 200, but sooner or later catch up with each other. Use of the "safety net" method to trade this setup is a must!!
When the above situation presents itself, watch out for high probability technical formations which must be followed with the ma20 and ma8 cross over to initiate a trade and apply the "safety net" trading method to temporarily trade against the Ema 200’s trend. The trade however must be strictly managed with the trailing stop loss method that I have demonstrated in the video below, this should ensure locking in maximum profits and sustaining minimum losses. When you find that the moving averages on a higher timechart have stacked up in the correct order to initiate a trade – you must as a rule, still wait for the correct setup to show up on the trading time frame for you to trade.
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