Strategies
Common strategies you can use with combination of tools as confluence. These are standard strategies that can be used, but not limited to just these strategies.
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Common strategies you can use with combination of tools as confluence. These are standard strategies that can be used, but not limited to just these strategies.
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When seeing a buy signal, you want to look for confirmation of trend as confluence. The Spice Trend Ribbon is holding the price above, acting as a support, and once you see confirmation of a candle body print below the trend, you may take profit.
When a buy signal prints, you want to check and see if there is a support that will give confluence on the buy signal. Spice levels will plot historical data where price action will hold as a support or resistance. In this case, the BUY signal printed above a level, and consolidated flat until hitting another level. You can use levels, as natural take profit areas, in order to not get caught in consolidation.
Spice Trend will act as a resistance and support trend line. If price action ignites, and or cross the trend, you can assume that the price action is ready to reverse. In this case, orange reversal bars printed, and price action was primed to reverse. So you can make the decision to enter in on the printed orange bar, or enter in on the buy signal. Eventually, price action crosses over Spice Trend, and you can decide to take profit on the position.
After buy signal has printed you can use Spice Cloud as an area of support or resistance, if you see any sign of reversal. and or divergence of price action away from the cloud -- you can take profit. In this case, price action directly rejected on the upper cloud(green) and went all the way to the bottom of the cloud (red)
