February 20th, 2020

S & P 500

Our charts for Bitcoin, Gold, Oil, USD/EUR continue in their trends per our definition with our basic moving average system. Since the beginning of February we have had only one trigger and that was the S&P 500 shown above. You can see that the blue line (21 EMA) was above the green line (55 EMA) meaning an uptrend and then at the beginning of February we received a trade trigger in the form of the red line (8 EMA) crossing, first below the blue and then back up. We placed our trade just above the close of the candle at the close of the day the cross occurred. I placed protective stop just under support and made it a trailing stop. Using a trailing stop has caused our protective stop to move up with the price – always the same distance from the market price.

The pattern that formed yesterday was the beginning of a candle pattern that usually means a reversal. Also, the high that has just formed in the price which is not matched by a high in the ROC. This is a warning. I said I would follow a system that any beginner can understand. These things are explained more fully in my Basic Trading Book I. You can get it for free by clicking on: https://charlesgoddard2020-f52a.gr8.com.

Back to reality. Given the warning, I have tightened the stop. This will get us out without giving up too much of our profit. I will give you all the details of the trade if and when we are stopped out.

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