Ride the wave
What is Ride The Wave?
Ride the wave is a simple strategy that consists of you riding the EMA after the confirmed reversal and or chriscross. For example on XAUUSD there may be a bearish reversal with the 50ema and 200 ema, once there is an apparent reversal, and the 50ema crosses under the 200 ema, price retests the 50 ema and fails, you can take a short position. After you enter the short position, you can ride the wave down until price pulls back up and breaks above the 50ema, at which point you may want to start looking to close the trade and possibly enter a buy if there is a confirmation. This also works very well with the 5 and 13 ema.
How do I use it?
When riding the wave down depending on the way you trade you can use it different ways. Let's say you only take 5-20 pips per trade; you can enter after a confirmation take your pips and close. After you close you will wait for a retest of the 5 and/or 13ema and once price fails to break above it, you can look to enter another short position. While doing this be mindful of support/resistance levels which can cause a reversal and always be scanning higher timeframes for other confirmations. The more confirmations you have that tell you to enter a trade the better. When trading I often look for at least 2-3 different confirmations before entering, there will be many different opportunities throughout the day so DO NOT ever force trades. With all this being said lets move onto the video where we can get more in depth and see some examples on the charts!