50 EMA Williams Strategy: by Admiral Markets Trading Camp
50 EMA Williams Strategy: by Admiral Markets Trading Camp
50 EMA Williams Strategy: by Admiral Markets Trading Camp
Entry Position
BUY
Price must cross above the 50 EMA High Williams Percentage Range crosses above the -20 level. The
Stochastic Oscillator is above its Signal line and level 60; When all the conditions agree, you place a Buy
order.
Set the Stop Loss a few pips below the most recent swing low point.
Set the Take Profit level twice the amount of the stop loss, or close the trade when price closes below the 50
EMA High.
SELL
Price must cross below the 50 EMA Low. Williams Percentage Range crosses below the -80 level. The
Stochastic Oscillator is below its Signal line and level 40. When all the conditions agree, you place a Sell
order.
Set the Stop Loss a few pips below the most recent swing low point.
Set the Take Profit level twice the amount of the stop loss, or close the trade when price closes above the 50
EMA Low.
Buy example
Sell example
Do you start noticing the pattern of Break OUT and REVERSE before
moving in a direction of a crossover? Great! Also keep in mind that some
times crossover happens directly on a breakout, which is the best signal for
a trade.
Stochastic
Buy (sell) signals can also be given when %K crosses above (below) %D.
Crossover signals are quite frequent however, which may result in whipsaws.
Pivot Points
The pivot point (daily pivot or DP) is the level at which the market direction
changes for the day. The pivot level, support and resistance levels calculated
from the previous day’s range are collectively known as pivot levels. These points
can be critical support and resistance levels. The reason pivot points are so
popular is that they are predictive as opposed to lagging. You use the information
of the previous day to calculate potential turning points for the day you are about
to trade (present day).
The general idea behind pivots is to go long above the daily pivot and short
below the daily pivot. The mood of the market (bull or bear) should be used when
deciding whether to go long or short at the pivot point. In addition, the first time
the pivot point is violated (to the upside or downside) is the most important
crossing of the pivot. Subsequent crossings are less meaningful.
The three most important pivot points are R1, S1 and the DP – Daily Pivot. The
general idea behind trading pivot points are to look for a reversal or break of R1
or S1. By the time the market reaches R2 or S2 the market will already be
overbought or oversold and these levels should be used for exits rather than
entries.
A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would
enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and ride the trend with the
remainder of your position.
Please take a notice that the examples given in this book are a more idealistic, and that in real time situations, traders might
need to consider the other less perfect signals by described indicators.
Price must cross above the 50 EMA High Williams Percentage Range crosses above the -20 level. The
Stochastic Oscillator is above its Signal line and level 60; When all the conditions agree, you place a Buy
order.
Set the Stop Loss a few pips below the most recent swing low point.
Set the Take Profit level twice the amount of the stop loss, or close the trade when price closes below the 50
EMA High.
SELL
Price must cross below the 50 EMA Low. Williams Percentage Range crosses below the -80 level. The
Stochastic Oscillator is below its Signal line and level 40. When all the conditions agree, you place a Sell
order.
Set the Stop Loss a few pips below the most recent swing low point.
Set the Take Profit level twice the amount of the stop loss, or close the trade when price closes above the 50
EMA Low.
Buy example
Sell example
Rating
4.00/5.00
Conclusion
Good system which exploits momentum above or below 50 EMA channels. It also uses Williams Indicator for
additional confirmations. Suitable for less and more experienced traders. It requires testing on H4 timeframe.
Its advantage is that it can be traded on all Intraday timeframes.