Home > Trade Replays > momentum trade MCD

momentum trade MCD

mo1.jpgIn the chart on the left, we see MCD is basically flat as far as the trend is concerned. We measure the trend by using the 20sma. In this case, the trend is flat, so there would be no longer term view of the stock. We use the 5sma to determine the stocks momentum. In this case on the 15 minute chart, the 5sma has a nice down0 slope. We know we can stalk a quicker scalp type trade in the direction of the momentum, which in this case is short. We get off a short trade when price begins to trade back in the direction of the momentum. In this case the short was good for just over .20. Since we knew it was only a scalp before we got into the trade, we exit into momentum.

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