Wheat: Traditional vs Predicted Moving Average Crossover
Wheat Trade
Basic strategy: Enter on breakout above signal
(Breaking above interim high of W bottom)
(Predicted Moving Average Crossover)
- Buy breakout at $5.73 a bushel above interim high of potential W formation
- Protective sell stop placement subjective
- Sell stop at logical point below lows entails huge risk
- Late entry loses out on good share of profits from uptrend
- Buy around $5.20 a bushel on open a day after predicted medium-term EMA (blue line) crossover
- Catch longer-term reversal early before W bottom fully confirmed
- Once in position, stick with predicted medium-term EMA trend to accrue profits
- Pick up more than $2,500 profit before W bottom “officially” in place
