A good setup to day trade (long) using 9EMA, MD and VWAP

Setup

• Opens up more than 2% from previous day's close with more than average volume
• ATR is > 0.75

Do not follow the price/action on the way up!

• Wait for the HOD
• Wait for re-trace from HOD, ideally to the MD
• At this stage, confirm the strenght of the upwards momentum
• Upwards momentum strength is
• LOW if VWAP > 9EMA > MD
• MEDIUM if 9EMA > VWAP > MD
• HIGH if 9EMA > MD > VWAP
• Both the MD and 9EMA should be pointing upwards
• Take a long position on the MD with targets at the VWAP, previous high or the HOD considering the risk is highest at LOW upwards momentum and lowest at the HIGH upwards momentum. SL just below the previous low.
• Close positions on targets (VWAP, previous high, HOD), take new long positions on each re-trace to the MD

This setup works best with 5 min timeline!

Example: SPCE on 22 Jan 2020