$BTC Place a five-eight-13 simple moving average (SMA) combination on the two-minute chart to identify strong trends that can be bought or sold short on counter swings and to get a warning of impending trend changes that are inevitable in a typical market day.
This scalp trading strategy is easy to master. The five-eight-13 ribbon will align, pointing higher or lower, during strong trends that keep prices glued to the five- or eight-bar SMAs.
Penetrations into the 13-bar SMA signal waning momentum, which favors a range or reversal. The ribbon flattens out during these range swings, and the price may crisscross the ribbon frequently. The scalper then watches for realignment, with ribbons turning higher or lower and spreading out, showing more space between each line. This tiny pattern triggers a buy or short-sell signal.