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Size shape and color of Candles are very important signals to use with the 50 sma. For example if the S&P breaks over the 50 with a full green candle that's Bullish. If the S&P breaks bellow with a full red candle that is bearish. Size and shape of course are also signals.
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3 Things to think about when you are trading the System in extreme volatility like the market is in now. 1) Trendline. The trend line for the S&P is up in the short term. 2) Candles are very important signal in and around the 50 sma. 3) Taking profits from trades. 4) Day Chart.
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