Exponential Moving Average (EMA)
USDJPY 1D MA-X STRATEGYTim's MA-X Strategy.
This is a Moving Average Crossover or MA-X Trading Strategy setup.
MA-X strategy consists of the 100 period simple moving average (SMA) in red,
and the 20 period exponential moving average in blue.
If the 20 ema is above the 100 sma then we only take buys or longs.
If the 20 ema is below the 100 sma then we only take sells or shorts.
*In this case price is above the 100 sma so we will only take buys or longs.
*This Pair has been in a nice uptrend for some time.
*It's now pulled back below the 20 ema and consolidating below the 20.
*We are going to look for a close above the 20 ema to go long.
*This trade plan we buy a daily candle close above the 20 ema.
On the breaking candle to enter a full-sized position we want the volume bar to reach up to the volume average.
If it doesn't reach the average but does reach 75% of the average open a ½ size position to reduce risk.
You can calculate the percentage by dividing the first volume average by the second volume average.
You should at least get 75%, if you don't then stand aside on the trade.
The stop loss will be 1.5 x ATR.
The first target will be 1 x ATR.
So the way that works is you get your candle close above the 20 ema that's your entry point.
At that time you look at the ATR of that candle.
You multiply that by 1.5 to get your SL.
You measure that distance behind the entry and that will be your SL.
Then you measure 1 ATR above the entry and that will be your first target.
If after entering the trade the candle closes back below the 20 ema, take the loss right then.
Do not wait for the price to hit the SL.
Our intention is that a breakout above the 20 ema should be explosive and hit our target fairly quickly.
If the momentum goes away we want to shut the trade down without taking a full stop if possible.
When the price hits our first target, close half the position for profit and set the SL to break even on the remainder.
Follow stops as price moves in our direction until the market takes us out.
These two rules are the very definition of cutting your losses and letting your winners run.
Typically does this by using two positions.
The first position has a stop loss and a take profit.
That position will close automatically when the first target is hit.
The second position will only have a stop loss and not take profit.
KMD/BTC | Key Level | Range Support | Trade Setup Today's chart – KMD BTC – consolidating at range/structural support. Price holding support validates a long trade to technical targets above.
Points to consider:
- Key level
- 21 EMA visual guide
- Oscillators oversold
Trading at its long-term range support; proceeding a stark correction. Price needs to hold support to form a bullish bias.
Further price action and trend continuation will allow the 21 EMA to act as a visual guide; a trade management tool assisting in defining risk. An S/R flip of the 21 EMA will further support the bullish bias.
The RSI is trading near oversold conditions indicating weakness in the immediate market. Stochastics are reaching oversold conditions and may remain oversold for some time, however, a valid buy cross will indicate momentum shifting on the macro time frame with stored momentum to the upside.
Overall, in my opinion, KMDBTC needs to hold support at this level for a long trade to technical targets above and risk defined below support.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
OGN/USDT | Holding Structure | Support Confluence |Trade Setup Today's analysis – OGN/USDT – Consolidating at daily support as it retraces from the local swing high.
Points to consider:
- Strong Counter-trend
- Daily/Trend Support Confluence
- 21 EMA Visual Guide
- Declining Volume
- Oscillators Below 50
OGN USDT retracing in a strong countertrend from its previous swing high as it reverts to trend support, historically seen to be a key pivotal level.
Price consolidating and respecting trend support as it coincides with daily support putting emphasis on the key level.
Further price development will allow the 21 EMA to act as a visual guide, assisting in trade management.
Volume is steadily tapering off indicating an influx being imminent, likely to coincide with the breakout.
Both the RSI and Stochastics trading below 50; an indication of lacking strength and momentum in the immediate market. Oscillators are likely to neutralise as the trade sets up.
Overall, in my opinion, price needs to hold trend support; a successful S/R flip of the 21 EMA validates a long trade to technical targets above with risk defined below daily support.
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
EURUSD Long idea/planGood morning traders and a happy Monday.
Fundamental analysis:
Were starting the week off with some major data events coming out of both the US and Europe.
Firstly we have the German Ifo Business climate (EUR) coming out at 09:00 GMT (my local time).
This has the power to move the market a substantial amount therefore i will not be entering a trade until we see the results and the reaction of this data on the market.
Secondly we have Durable goods orders (USD) data coming out at around 13:30 GMT.
This also has the power to change the market price however, the consensus on this one is a lot lower than the result of the previous.
I don't think we will see too much of a reaction on this but if we do i think it don' think it will be in favour of the USD.
Technical analysis:
As for the technical side of things price is making new higher highs and higher lows and this has been the case now since 10th June.
You can see that a nice trend line has formed starting on 21st June. I will be playing off this trend line for the rest of the week as there are no major support/resistance lines for a while now. The next resistance which is a weekly resistance will be at 1.20767 (NEARLY 400 PIPS!!). The closest major support is at 1.04094 (290 Pips).
In conclusion EURUSD is in a very strong uptrend and i will be waiting for the retest and rejection of the trend line this week. Data is also going to provide a big bias for me in terms of which way i am going.
Have a good week of trading guys!
Ethan.
NKLA Long, EMA144 as support and at demand zoneDaily chart touched EMA144
Daily Demand zone touched, not confirmed yet
If trade stock, better wait for Zone confirmation, trendline break, and cross over EMA144.
Entry: below 31
Stop: 26;
Target1: 52; risk/reward=1:4
Target2: 66; risk/reward=1:7
I am not a Pro trader. I need few months to work on rule based trading strategies.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate consistently.
GO/BTC | S/R Flip Re-test| Trend Continuation | Volume Influx Today's analysis – GO/BTC – Establishing an S/R flip retest following a bullish break of structural resistance.
Points to consider:
- S/R flip Re-test (trend continuation)
- Increasing volume
- 21 EMA (visual guide)
- Oscillators above 50
GOBTC retracing and consolidating above structural support; a successful retest of this level will establish a higher low above the key level forming a bullish bias in the market.
The break of structural resistance was backed by strong volume, adding validity to the price-action. A sustained influx of volume will be key for maintaining the bullish momentum and avoiding any fake-outs.
Further price action and trend continuation will allow the 21 EMA to act as a visual guide; a trade management tool assisting in defining risk.
Both, the RIS and stochastics trading above 50, indicating strength and momentum is currently present in the market. Oscillators need to range above 50 to maintain the bullish momentum.
Overall, in my opinion, a successful S/R flip retest validates a long trade to technical targets above with risk defined below structural support.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
TRXBTC | Key Level |S/R flip Retest | Head and Shoulders Today's analysis – TRONBTC – Trading at a key pivotal level, putting in an S/R flip retest.
Points to consider:
- Valid head and shoulders (neckline breached)
- S/R flip retest
- 200 EMA support Confluence
- 21 EMA (visual guide)
- Low volume
- RSI trading above 50
- Stochastics buy cross
TRXBTC has breached its inverted head and shoulders neckline, validating the pattern and establishing a higher high, forming a bullish bias in the market.
Consolidating at it its daily support zone, putting in an S/R flip retest. Price needs to hold this level for a valid long trade.
Support zone is also in confluence with the 200 EMA acting as dynamic support, further solidifying this key level. Price trading above the EMA will support the bullish bias.
Further price development will allow the 21 EMA to act as a visual guide assisting in trade management.
Volume is clearly tapering off and below average. An influx of volume is key at this level to support the trend continuation and void any fake-outs.
RSI holding above 50 as it cools-off from overbought conditions; ranging above 50 will retain the strength in the market.
Further bullish price action will form a bullish crossover on the stochastics with ample stored momentum to the upside.
Overall, in my opinion, TRXBTC is in its buy zone for a valid long trade with technical targets above. Volume follow-through is needed and will be key for a bullish continuation.
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
LBCBTC | Key Pivot Point | Channel Support | Volume InfluxToday’s analysis – LBCBTC – Testing key support, price holding this level forms a higher low; first signs of trend continuation.
Points to consider:
- Macro-trend bullish
- Key level- channel support
- 21 EMA- visual guide
- Volume influx
- Oscillators oversold
LBCBTCs macro trend is bullish with consecutive higher lows and higher highs forming a probable ascending channel. This projection gives us a bullish bias on the market.
Price is at a key pivot point, channel support, respecting and holding above this level backs the bullish bias.
The 21 EMA acts as a visual guide upon strong trend continuation as it is historically respected by price action.
Recent volume influx solidifies channel support as a key level. Volume must remain above average to maintain a trend continuation and avoid any fake-outs.
Both, the RSI and Stochastics trading below 50, recovering from oversold conditions, a sign of weakness in the immediate market. However, further consolidation above 21 EMA will allow oscillators to recover with ample space to the upside before reaching overbought conditions.
Overall, in my opinion, as price continues to hold channel support, a long trade is validated upon an S/R flip of the 21 EMA with the immediate target being channel median.
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
AUDUSD | Key Level | Pivot Point | Range ResistanceToday's analysis – AUDUSD – Trading at a key level as range resistance and dynamic support converge.
Points to consider:
- Pivot Point (key level)
- 21 EMA (dynamic support)
- Oscillators above 50
AUSUSD trading at a pivotal point in the chart, re-testing range resistance. A breakthrough failure will validate a short with range median as the immediate target. Body candle closes above range resistance validates a long trade to structural resistance.
Price action respecting the 21 EMA has allowed it to act as a visual guide. Further price development as it breaks in either direction will allow the MA to act as dynamic support/resistance assisting in trade management.
Both, RSI and Stochastics are ranging above 50, a sign of strength and momentum in the immediate market.
Overall, in my opinion, further price development will allow for directional bias, validate a trade in either direction.
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
BTC LOOKING BULLISH JUST AN IDEA BUT HEAR ME OUT...Hello I see that the MACD may say a downside is coming, however it also looks to be winding up for break out. It makes me wonder if this is the start to the bull run due to the altcoins pumping while BTC ranges which is what it does before a HUGE TARE!!! Also it would make sense because the price has been suppressed for SOOOOO LONNNNGGGG. The only part I see as a potential killer to the whole bull run is if USD TETHER FAILS. If the law's jaws <---- teehee clamp shut on them we could be setting up for a drop like BTC and ALTCOINS has ever seen.
With all that said and out there...
Trade carefully and responsibly,
Aru
Of
Patriot Crypto
Have a great DAY/NIGHT!!!
SHORT TERM BULLISH PRICE ACTION TO FILL CME GAP?Understanding the difference between accumulation and distribution is VERY important if you want to succeed further within your trading performance, wisdom, and experiences in future trades to come.
Monthly closes this week, don't get caught sleeping' or you'll get YURLO'D.
EURUSD LongMy overall bias on EU today would be long.
Trend line is holding nicely.
There has just been a cross over on the Stoch and RSI is looking very bullish.
MACD also bullish.
Not the best time to buy now but after a reversal (off or close to the trend line) would be a good time to get in.
On a fundamental front this week Monday was a read day for the USD and for the EUR is wasn't so positive.
Today we've seen some bad data come out of the EUR which tells me we might be seeing price drop soon.
There is still quite a lot f data to come out of the US today and we will see how that holds but as for now pretty neutral on the fundamental front.
If I was to get into this one it would be based solely on the technical side of things.
Let me know your opinions.
Have a good week trading guys
THETABTC | S/R Flip | Trend Reversal | Trade SetupToday's analysis – THETABTC – Putting in an S/R flip retest of daily support. Price holding this level validates a long trade to structural resistance.
Points to consider:
- Trend Reversal (S/R flip)
- 21 EMA (visual guide)
- Bearish divergence (playing out)
- Stochastics above 50
- Low Volume
THETABTC forming a probable higher low above daily support as it retraces for a retest. Price holding this level will indicate first signs of a trend reversal as the market builds momentum to the upside, establishing a bullish bias.
The 21 EMA will act as a visual guide as the trend develops and price respects the MA assisting in trade management.
Bearish divergence playing out as price tests support. Both oscillators need to hold and range above 50 to maintain the bullish bias.
Volume is low and below average, usually, an indication of an influx being imminent.
Overall, in my opinion, s successful retest of the daily support level validates a long trade to structural resistance with risk defined (SL) below support zone.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
DGBBTC | Ascending Triangle | Apex | Resistance Cluster Todays Analysis – DGBBTC – Trading within a multi-month ascending triangle, nearing its apex as support and resistance converge.
Points to consider:
- Resistance cluster
- Higher lows - apex
- 200 EMA – visual guide
- Low volume
- RSI above 50 – higher low projection
- Stochastics overbought
DGBBTC unable to break and hold above daily resistance after multiple failed attempts over a multi-month period indicates a strong resistance cluster.
Price action has been forming a higher low projection as it convergence into daily resistance. A break in either direction is imminent as price coils into its apex.
DGB respecting the 200 EMA, allowing it to act as a dynamic support. Price trading above the EMA is perceived bullish; breaking below considered bearish.
Volume has been declining and remaining below average. Historically, an inflow of volume has coincided with bullish price action, indicative of an influx being probable at the retest of daily resistance.
RSI breaking above 50, trading in a higher low projection indicating increasing strength in the market. Stochastics are overextended, although they may remain there for some time, momentum has been stored to the downside.
Overall, in my opinion, further price development will determine a directional bias.
An S/R flip re-test of daily resistance with volume follow through validates a conservative entry for a long trade with technical target of structural resistance. However, breaking below trend support, price will likely retrace to structural support.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
GBPUSD 4H EMA SHORT TRADING STRATEGYExponential Moving Average Strategy (Trading Rules – Sell Trade)
Our exponential moving average strategy is comprised of two elements. The first degree to capture a new trend is to use two exponential moving averages as an entry filter.
By using one moving average with a longer period and one with a shorter period, we automate the strategy. This removes any form of subjectivity from our trading process.
Step #1: Plot on your chart the 20 and 50 EMA
The first step is to properly set up our charts with the right moving averages. We can identify the EMA crossover at the later stage. The exponential moving average strategy uses the 20 and 50 periods EMA.
Most standard trading platforms come with default moving average indicators. It should not be a problem to locate the EMA either on your MT4 platform or Tradingview.
Step #2: Wait for the EMA crossover and for the price to trade below the 20 and 50 EMA.
The second rule of this moving average strategy is the need for the price to trade below both 20 and 50 EMA. Secondly, we need to wait for the EMA crossover (20 ema below 50 ema), which will add weight to the bearish case.
By looking at the EMA crossover, we create an automatic buy or sell signals.
Since the market is prone to false breakouts, we need more evidence than a simple EMA crossover. At this stage, we don’t know if the bearish sentiment is strong enough to push the price further after we sell to make a profit.
To avoid the false breakout, we added a new confluence to support our view. This brings us to the next step of the strategy.
We refer to the EMA crossover for a sell trade when the 20-EMA crosses below the 50-EMA.
Step #3: Wait for the zone between 20 and 50 EMA to be tested at least twice, then look for selling opportunities.
The conviction behind this moving average strategy relies on multiple factors. After the EMA crossover happened, we need to exercise more patience. We will wait for two successive and successful retests of the zone between the 20 and 50 EMA.
The two successful retests of the zone between 20 and 50 EMA give the market enough time to develop a trend.
Never forget that no price is too high to buy in trading. And no price is too low to sell.
Note* When we refer to the “zone between 20 and 50EMA,” we actually don’t mean that the price needs to trade in the space between the two moving averages.
We just wanted to cover the whole price spectrum between the two EMAs. This is because the price will only briefly touch the shorter moving average (20-EMA). But this is still a successful retest.
Now, we still need to define where exactly we are going to sell. This brings us to the next step of the strategy.
Step #4: Sell at the market or a limit order when we retest the zone between 20 and 50 EMA for the third time.
If the price successfully retests the zone between 20 and 50 EMA for the third time, we go ahead and sell at the market price inside the zone with a bearish candle close or limit order at 50 ema line. We now have enough evidence that the bearish momentum is strong to continue pushing this market lower.
Now, we still need to define where to place our protective stop loss and where to take profits. This brings us to the next step of the strategy.
Step #5: Place the protective Stop Loss 20 pips above the 50 EMA
After the EMA crossover happened, and after we had two successive retests, we know the trend is down. As long as we trade below both exponential moving averages the trend remains intact.
In this regard, we place our protective stop loss 20 pips above the 50 EMA. We added a buffer of 20 pips because we understand we’re not living in a perfect world. The market is prone to do false breakouts.
Step #6: Take Profit once we break and close above the 50-EMA
In this particular case, we don’t use the same exit technique as our entry technique, which was based on the EMA crossover.
If we waited for the EMA crossover to happen on the other side, we would have given back some of the potential profits. We need to consider the fact that the exponential moving averages are a lagging indicator.
The exponential moving average formula used to plot our EMAs allow us to still take profits right at the time the market is about to reverse.
4 Hr. Practice Trading (Using MACD) W/+50/200 EMA (PART 1)Curious to see if a new configuration will lead to better lower timeframe (4hr) results. No targets for now, however moving up stop loss once break out begins. More or less just recording data and seeing if I can catch MACD breakouts.
Im used to working with daily and weekly FYI
ARU
"STOP LOSSES PEOPLE!!!"