Moving Average Breakouts by Ken Calhoun
Welcome to a new column on techniques for active traders. Each month, this daytrader and founder of TradeMastery.com will cover topics such as momentum trading, breakout trading, and other technical analysis–based techniques. This month, you’ll learn an updated trading technique with specific, actionable technical analysis, and you’ll also learn how to identify and manage the trade from start to finish.
TRADING STRATEGY: 100- AND 200-PERIOD MOVING AVERAGE ENTRY
When price action on a 90-day daily candlestick chart breaks out above major moving averages, institutional trading volume usually lifts prices to new highs. You can capitalize on these breakouts by entering your trade once price moves above 100-period and 200-period simple moving average (SMA) lines...