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200 Ema Reversal Strategy

This document discusses a 200 EMA reversal strategy for identifying potential trend reversals in stocks. It notes that when a stock's price crosses above or below its 200-day moving average, it signals a technical reversal in the long-term trend from bullish to bearish or vice versa. It provides guidelines for applying this strategy, such as looking for double bottom patterns on the 200 EMA and only entering long trades when the stock confirms a reversal by closing back above the 200 EMA. Examples are given and entry rules discussed, along with resources for screening for stocks crossing the 200 EMA.

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1K views20 pages

200 Ema Reversal Strategy

This document discusses a 200 EMA reversal strategy for identifying potential trend reversals in stocks. It notes that when a stock's price crosses above or below its 200-day moving average, it signals a technical reversal in the long-term trend from bullish to bearish or vice versa. It provides guidelines for applying this strategy, such as looking for double bottom patterns on the 200 EMA and only entering long trades when the stock confirms a reversal by closing back above the 200 EMA. Examples are given and entry rules discussed, along with resources for screening for stocks crossing the 200 EMA.

Uploaded by

arjeet
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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200 EMA REVERSAL STRATEGY

By Jaynesh Kasliwal
NOTE

 In all my charts
 Red line is 21 ema

 Green line is 50 ema

 MACD as normal settings

 RS as 65 Period
200 EMA : THE LONG TERM TREND

 1. When a stock price crosses its 200-day moving


average, it is a
 technical signal that a reversal has occurred.

 2. A stock above 200 ema is considered bullish in


its long term trend and if its below 200 ema its
considered bearish
 3. A simple rule of not buying stocks below 200
ema for short term trading could save a lot of
money
 4. One may consider investing in stocks if the
stock is below 200 ema only if he is confirmed
about the fundamentals of the stock
 5. Some may not agree with this and its ok!

 TREND:
 200 ema trending up : Uptrend

 200 ema sideways : Consolidation

 200 ema trending down : downtrend


HOW TO APPLY ?
 Select: moving average exponential
SETTING
BEAR RUN BELOW 200 EMA
BULL RUN ABOVE 200 EMA
 Close above 200 ema after a general market
correction
DYNAMIC SUPPORT
STRATEGY
 Look for Reversal on stocks near 200 ema after a
general market pullback
 Look for double bottom structure on 200 ema for
confirmation
 Single pullback on 200 ema is sold of generally

 If a stock is consolidating near 200 ema wait for


small trend change before initiating a long trade
 If stocks have good fundamentals then reversal
have high chances as 200 ema is value zone for
investors
PRAJ IND
 Double bottom on W pattern formation on 200
ema
 Always trade on 2nd reversal on 200 ema as
stocks generally go into bear run once this is
broken
 Long trade with stoploss below 200 ema can be
initiated risk should be max 5 to 7% per trade
ENTRY RULES
 Enter on double bottom structure breakout
 Stoploss in this case should be max 5 to 7% as
holding stocks below 200 ema is not advised
 Keep Pyramiding if stocks move higher and
adding positions
SCREENER
 https://chartink.com/screener/fundamental-
technical-crossing-200-ema
FREE PRIVATE GROUP
https://app.cosmofeed.com/view_group/618f868741b
bcc62038301f0

JOIN TELEGRAM FREE GROUP


https://t.me/Techno_Charts

For Paid Calls , Swing Trading Strategy and


additional Services please dm :wa.link/mzh9un

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