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    Trading Strategy

    Uploaded by

    mannimanoj
    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, and 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. The strategy is intended for trending markets and can be implemented on intraday timeframes as well. Candlestick patterns and support/resistance

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Trading Strategy

    Uploaded by

    mannimanoj
    215 views3 pages
    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, and 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. The strategy is intended for trending markets and can be implemented on intraday timeframes as well. Candlestick patterns and support/resistance

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    Great strategy to earn profit

    Original Title

    Trading strategy

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    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, and 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. The strategy is intended for trending markets and can be implemented on intraday timeframes as well. Candlestick patterns and support/resistance

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    215 views3 pages

    Trading Strategy

    Uploaded by

    mannimanoj
    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, and 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. The strategy is intended for trending markets and can be implemented on intraday timeframes as well. Candlestick patterns and support/resistance

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The key takeaways are that a simple moving average crossover strategy is described using three EMAs to identify trends and support/resistance levels in the market. Risk management through stop losses and profit taking levels are also discussed.

    The three moving averages used in the strategy are the 50 EMA applied to the high price, 15 EMA applied to the close price, and 50 EMA applied to the low price.

    The buying conditions are when the 15 EMA crosses above the other moving averages, buy as soon as this occurs and place the stop loss just below the recent swing low. Take profits when the 15 EMA falls to touch the 50 EMA or reaches resistance.

    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 a 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 not 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 a 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 zone or any reversal conditions 
    like pin bar formation/ bullish candlesticks clue… 
     
    In above setup if you mix knowledge of candlesticks/support & resistance/ chart 
    patterns it will work more smoothly and will help you in avoiding false signals. 
    Follow me on my twitter handle @rachitpjain for more market related updates. 
    Cheers..!!! 
    Keep Learning.. 
    Keep Earning.. 
     
    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.. 
    Sharing is caring…  

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