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Trading Strategy v.1

The document describes a trading strategy using three exponential moving averages (EMAs) to identify trends in the market. It involves applying a 50-period EMA to the high and low prices, and a 15-period EMA to the close price. Buying signals occur when the 15-period EMA crosses above the other moving averages, while selling signals happen on crosses below. Stops are placed just below swing lows for buys and just above swing highs for sells. Profits are taken when the 15-period EMA touches the 50-period EMA or encounters resistance/reversal patterns. The strategy is intended for trending markets and can be implemented on intraday timeframes as well.

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amit
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232 views4 pages

Trading Strategy v.1

The document describes a trading strategy using three exponential moving averages (EMAs) to identify trends in the market. It involves applying a 50-period EMA to the high and low prices, and a 15-period EMA to the close price. Buying signals occur when the 15-period EMA crosses above the other moving averages, while selling signals happen on crosses below. Stops are placed just below swing lows for buys and just above swing highs for sells. Profits are taken when the 15-period EMA touches the 50-period EMA or encounters resistance/reversal patterns. The strategy is intended for trending markets and can be implemented on intraday timeframes as well.

Uploaded by

amit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

A Simple strategy for swing traders or even for cash market people…

Before proceeding ahead, let me make it clear that the strategy mentioned below
is not an holy grail strategy, if you are parting with stock market measure risk
before taking any position as stock market returns are not like fixed deposit
returns, if you don’t measure risk don’t make any position in stock market.

Strategy is formed using three exponential moving average, many people


underestimates moving average as a tool. There is no just one right way to use
moving averages. It can be used to find out the trend of the market, dynamic
support resistance in the market, and can even use to figure out the exact pin
point for buying or selling. Kindly note, this strategy will work only in trending
market.

If you are not aware about what is moving average than take a break and please
click on the below mentioned link to get basic understanding of the same.
https://twitter.com/rachitpjain/status/1028111826972602368?s=19

Setup :
Apply EMA 50 to high price,
Apply EMA 15 to close price, and
Apply EMA 50 to low price.

Buying Conditions
● 15 EMA (black color) should cross above all the moving averages.
● Buy as soon as the above condition is met.
● Place your stop just below the recent swing low.
● Take profits when the 15 EMA falls to touch the 50 EMA/reaches first
trouble area like facing resistance from strong resistance zone or any
reversal conditions like pin bar formation/ bearish candlesticks clue…
● One can also look for pyramiding opportunity when stock comes near 50EMA
and price not sustaining below the 50EMA.
● Time Frame - 4hr/ Daily/ Weekly…
● You can also form intraday strategy using the same logic just use smaller
time frame like 5/15 min or 3/10 mins..
● In similar manner one can utilise the same setup for going short
● 15 EMA should cross below all the moving averages.
● Sell as soon as the above condition is met.
● Place your stop just above the recent swing high.
● Take profits when the 15 EMA rises to touch the 50 EMA/reaches first
trouble area like facing support from strong strong zone or any reversal
conditions like pin bar formation/ bullish candlesticks clue…

Disclaimer :
I am not a SEBI registered advisor, Any Advice or information on this document is general advice for education purpose only
and does not take into account your personal circumstances, please do not trade or invest based solely on this information.
By Viewing any material or using the information within this doc. you agree that this is general education material and you will
not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here. If
I post something here that you find helpful as you build or manage your portfolio, that’s wonderful but do not consider it as
a financial advise.

Share Knowledge among other friends..


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