Nikkei looking sharp
My purely technical lazy system is firing a buy trigger for the Nikkei225 if the index closes above 19 197 on Friday, 5 May. I will then be buying this exchange-traded fund (ETF) a little after the open on Monday, 8 May.
As mentioned, this is a technical system that uses a weekly chart of the index with three exponential moving averages (EMAs). The first two EMAs are the 30- and 60-week EMAs and I need the shorter 30-week EMA to be higher than the 60-week EMA to indicate an upward trend. With the above in place, I then wait for a weekly close that sees the index value go from below to above the 15-week EMA during the course of a week. This is my trigger and occurred on Friday, 28 April.
The last part of the process is the confirmation and that requires a positive week following the trigger before I enter the trade. My exit is again based on the index and will be a weekly close below the 30-week EMA.
My exit is again based on the index and will be a weekly close below the 30-week EMA.