Here is a great setup.
This is classic market action and you will see this many times early after a stock breaks out to a new trend.
This works in uptrends or downtrends and here is a new uptrend example.
The market breaks out above the 18 and 40 day simple moving averages and the 18 goes above the 40.
Then the market comes down and tests the moving averages and goes below the 18 and often times goes below the 40. Below the 18 is good enough for a trade setup.
When the market then closes above the 18 day moving average this is the signal the the uptrend is starting again and the buy signal. The stop if wrong is the last minor price low just before you enter the trade.
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