Bargain Hunting with Price Action

Bargain Hunting with Price Action-Bargain Hunting with Price ActionBargain Hunting with Price Action-Bargain Hunting with Price Action

Chapter 6 introduced you to bargain hunting along the edge of priceby using the daily high or low as an entry point within a trend definedby a moving average. This strategy works well when the high or lowentry zone is near the moving average, but it often breaks down as themarket begins to swing from one trend into another. In this chapter you willlearn a bargain-hunting method that takes advantage of short-term priceswings, regardless of trend. This methodology builds on what you alreadyknow about identifying bargain days and introduces an approach to tradingthem that is more responsive to the most recent price action.This chapter introduces you to an indicator called a Hull moving average.You’ll learn to use this indicator as a guide to identify bargain daysbased on price action. You’ll learn how to manage risk and identify profittargets using this strategy. Finally, we will walk through several exampletrades to solidify your understanding.I have taught this strategy to traders around the world and I still trade itmyself whenever I see a good bargain opportunity. If I had to pick, bargainhunting with price action and a Hull moving average is probably my favoritemethod to trade the spot currency market