Get started

Exponential Moving Average (EMA)

SPDR S&P 500 15M ETF DAY TRADING STRATEGYWe’re going to talk how ETF trading strategies can help you grow a small account quickly. ETFs are versatile financial instruments that are suitable for every trading style from day trading ETF to swing trading ETF. ETF exchange traded funds are financial instruments designed to follow the price of a specific basket of assets and are traded on the US stock exchanges. ETF trading works exactly like stock trading. For example, the SPDR S&P500 ETF (SPY) is tracking the S&P500 index. Day trading is among the best ETF trading strategies because this environment is characterized by high volatility. the best ETF to day trade SPDR S&P 500 (SPY) Gold Miners ETF (GDX) ProShares VIX Short-Term Futures ETF ProShares Ultra VIX Short-Term Futures ETF (UVXY) iShares MSCI Emerging Markets ETF (EEM) Step #1: Apply the 50 – period Moving Average on the 15-Minute Chart The 50 – period moving average is one of the most popular indicators in stock trading. The 50 MA is a psychological level that many professional traders and investors use to gauge the market sentiment. Because many traders use the 50 moving average it has more relevance to the price action. This is the reason why we use the 50 MA in combination with the opening trading range. Step #2: Only Enter Trades after 10:00 AM ET We like to focus on the opening trading range when day trading ETFs. The morning session is when the smart money usually steps in the market and subsequently the most volume happens during the morning session. By focusing only on the morning session we avoid being glued to the chart all day long and only trade alongside the institutional money. The regular trading hours for the SPDR S&P 500 trust starts at 9:30 AM ET. But, we like the first 30 minutes after the open, to wait and see what the smart money are doing. Successful day trading leveraged ETFs is all about taking those opportunities during the most volatile time of the trading day. Step #3: Price Needs to Hold Below 50-MA and to Open in the Lower Part of the Previous 5 Day Trading Range After we analyze how the market plays out during the first 30 minutes of the opening session, we look for the price to hold below the key 50 moving average. Secondly, the SPDR S&P 500 ETF also needs to open in the lower part of the previous 5 day trading range. Simply mark on your chart the previous 5 trading days and the lowest price of that trading range. If, on the six day we open near the lowest price and we hold below 50 MA we’re good to sell SPY. Step #4: Hide SL $0.25 above the 50 Moving Average With this mechanical day trading strategy we place our stop loss $0.25 above the 50 moving average. If after the open SPY breaks above the 50 MA it signals that the bears are very weak. We found this technical reading to be very significant for day trading. Step #5: Take Profit if SPY Declines $1.00 This trade setup is based on our experience that if all the above conditions are satisfied, then there is a very high probability for the SPY ETF to fall at least $1. If your profit target is not reached by 4:00 PM ET close the trade manually. Note** the above was an example of a SELL trade. Use the same rules for a BUT trade – but in reverse. Day trading ETFs provides simple investment opportunities and have a lower operating cost than most of the other financial vehicles. Don’t underestimate the power of trading leveraged ETFs if you want to take advantage of the intraday volatility.
AMEX:SPYShort
by Tradingstrategyguides
CADJPY 15M MFI DAY TRADING STRATEGY WORKS ON FOREXThis is a great Day trading strategy What ever session you trade this will work Best on 5m charts but all TF work Rule 1 - add MFI to chart and change these settings - Length 3 / Levels 0/100 Rule 2 - I like to add the 50 ema to determine what direction I want to trade Rule 3 - Wait for MFI to hit the 100 level twice if bullish bias trade Rule 4 - Buy when MFI hits 100 3rd time and there is a green candle close also Rule 5 - SL nearest fractal low Rule 6 - you determine TP strategy
Long
by Tradingstrategyguides
GBPUSD A Potential Long Opportunity Awaiting Slight Retracement!I am awaiting for this pair to retrace to around 1.30000 level where the weekly pivot is located as well as the daily 50 EMA and then i am planning to go LONG on this pair. Looking at the main chart, a long term daily trendline was violated which also happens to be the neckline of the inverse head and shoulders pattern that had formed. The price has already broken through the daily 50 EMA and now i am waiting it to retrace to 1.3000 before i make my entry and take this pair LONG. The possible risk to reward ratio on this one is around 1:3 or 1:4 but however as we go along the fundamental and technical factors must be taken into consideration to adjust the TP AND SL levels The inverse head and shoulders formed right the 61.8 fib retracement of the previous weekly swing (see the chart below) adding to further confluence that the pair is ready to go up! Adding to the further more confluence, the weekly chart attached below indicates the wedge has been broken and now is seems to be retesting the upper trendline Have a read to the related ideas as well, as the harmonic pattern has developed and the pattern is yet to be invalidated either. FUNDAMENTAL ANALYSIS Well with all the technical analysis done which points to this pair heading upwards, lets look at the fundamental parts. The GBP recently is heavily relient on the brexit news and the recent developments show the deal is likely to be wrapped up in october this year. should this happen then we can see the GBP appreciate against many pairs. However against the USD the gains might be limited as the USD has been doing well this year and the FED rate hike expectations could mean less gain for this pair. Thus taking this all into consideration, the SL AND TP will be adjusted accordingly. However other GBP pairs are likely to gain more value such as the EURGBP, GBPNZD AND GBPJPY OR GBPCHF But for now this pair seems to show a lot of confluence to the upside and i would probably enter the trade once the price retraces to around 1.3000. stay tuned for any updates and signals. thank you
Long
by FX618Analysis
EMA strategy - June to dateThis EMA test produced 9% over 5 trades Rules: Create four closing price Exponential Moving Averages (EMA) indicators on a 4hr chart 20 EMA , 50 EMA , 160 EMA and 400 EMA SETUP: 1. Look for alignment on the two bigger EMAs (160 and 400) - when 160 is below 400 for a short and 160 is above 400 for along 2. Wait for the same setup on the two lower EMAs (20 cross below 50) 3. Enter at the point of the cross - ENTRY Create 2 trades:- 30 pips and 60pips and stop loss at -30pips Happy Trading Follow @Bizlus
by bizlus
BTC showing bearish signsEven though I have not yet placed a short, BTC is looking to close its weekly candle below last weeks low (61xx). The bears are not done yet, as I am expecting a final push lower before the final bull run. 46xx makes a lot more sense for institutions and big money to jump in, but a reversal from 57xx has happened three times before and clearly serves as a strong support. I doubt this will be the reversal, even if it serves as support in the short term. When this level is finally broken, weak hands will be apparent and panic selling will set in. This could easily smash us below $5000 and finally meet the levels that big money has been eyeing since the crash. Consolidation is expected between the resistance of 66xx and support of 57xx. Short term, a push upward to the 9EMA, which is aligned with the resistance shown on the chart (66xx), would not surprise me. If price reaches this level of resistance, I will place a short trade with a TP in the 61xx region and a SL in the 69xx region. If this region is met, a quick melt back down will happen because I strongly believe the weekly candle will close bearish. As seen with the highlighted green squares, every time we have had a bearish weekly candle, it is followed by another bearish candle. History tells us that this weeks candle will close bearish. Time will tell, happy trading!
COINBASE:BTCUSDShort
by Musgravio97
ETCBTC without emotion interference The blueish rectangle showing very peculiar price action which took place on the first half of august. This strong bullish movement was wiped out with couple of days and pull it down below the most important support/resistance level for this pair which is 0.02. I can see 2 possible scenarios the pair will be pull down by 200 EMA on 4H chart and most likely 0.02 level will no be breached or Pair will do another attempt to go above mentioned level and then it will be pulled down by 200 EMA towards 0.01. If my scenario is correct ETCBTC should stop for while around 0.013700 and then try to reach 0.01. The pinkish rectangle refers to strong support/resistance area when closing short position is not a bad idea.
Short
by Krystiannwk
2
HOW does a Moving Average work? #EZ-Learning by EXPLANATIONHey tradomaniacs and becoming traders, here some more education for you and especially for those who started trading and heared about that weird thing called Moving Average. I hope you enjoy it and learn something. If you need more education just check my videos and posts tagged as education. Peace and happy learning Irasor Trading2ez Wanna see more? Don`t forget to follow me. Any questions? Need more? PM me. :-)
BITFINEX:XRPUSDEducation
by Trading2ez
1
Technical and Fundamental Analysis of GBPUSD.On the daily chart, the 200EMA shows me where the long term trend will be for the currency, the EMA showed that price was below the EMA which indicates that the trend is bearish.I can also see a breakout on the price resistance line(1.26978) so it could show that the price will continue to go down.I switched to the 4 hour to see if the Ichimoku signals show bearish signals, there is bearish cross with Kijun Sen is in top of the Tenken sen which shows price is bearish. Price is also below the pink cloud which shows signal for the that the trend is bearish. Also the Chikou space shows that the line is below price which gives e the confirmation that the trade is more likely to go bearish. The fundamental news was on the GBP and it was the U.K. Average Earnings Index +Bonus is the measure of the change in the price businesses and the government pay for labour, including bonuses. The Average Earnings figure gives us a good indication of personal income growth during the given month, but also potential inflationary pressures. The U.K. Claimant Count Change is the measure change in the number of unemployed people receiving unemployment benefits in the U.K. during the reported month. A rising trend indicates weakness in the labour market.. as both of the readings were lower than previous, the Average Earnings Index +Bonus previous was 2.5% and the actual was 2.4%, the U.K. Claimant Count Change previous was 9.0K and the actual forecast was 6.2K .it means that price will do be in a bearish forecast. I would go short on this major pair.
Short
by LDForex_
NZDJPY Bulls & Bears Fighting To Gain Control At 75.000 Level!This is the forex quote for the New Zealand Dollar vs. Japanese Yen exchange rate. NZD (the 'base currency') is quoted in terms of JPY (the 'counter currency'). The Yen is a historically low-yielding currency, making an attractive vehicle to fund carry trades (where traders borrow cheaply in JPY to buy higher-yielding currencies, including NZD). Investors tend to favor carry trades at times of optimism about global economic performance and stability; they shun them at times of market stress. This makes NZD/JPY sensitive to swings in broad-based market sentiment trends. The pair is likewise responsive to economic news - both domestic and that of key trading partners (notably China) - that shapes expectations for Reserve Bank of New Zealand monetary policy. Source of above info: www.dailyfx.com Looking at the daily charts, the price has been moving inside the wedge that has been held on many occasions, However the difference this time around is the presence of a strong psychological of 75.000 which is acting as a crucial support. Both bulls and bears are fighting to regain the control of the trend at the moment!. However both long and short scenario are possible for this pair but a LONG scenario is more favored in this case. For us to go LONG on this trade certain criteria needs to be met, First of all the daily wedge and EMA 50 needs to be broken followed by the retest of the 50 EMA on the daily charts. The above chart represents the weekly chart, which also indicates that the price is confined in another wedge. If at all the criteria are met it would be wise to target the upper trend line on the weekly wedge for our TP levels. Or we could also target the EMA 50 on the weekly time frame for our TP levels. The monthly chart above displays the levels of support and resistance for more info. The current price seems to be struggling on where to head next at the 75.000 crucial level. It remains to be seen if the bulls can take control of the situation which will most likely happen if the daily wedge is broken. I will provide any signals pertaining to this pair once or if the criteria are met. Cheers Follow me for more in-depth analysis and signals
Long
by FX618Analysis
4
Wheat, Soybeans, and CornWhy Wheat and why now. What about Soybeans and Corn. Looking across the Ags, it seems that Wheat is enjoying the most upside. Why is this. In keeping with my focus on the DMI and ADX, I think you’d have start by looking at the monthly chart of the 3. One of the key tenants of DMI/ADX is that best trades seem to originate when the ADX is below 20 for an extended period of time. And, for Wheat, that has been since June of 2013. Since then, it has moved between a couple of lines and for the most part, remaining below the 13 period EMA of the high. As an aside, in my previous articles, I used EMA’s on the close of price but have moved to a 13EMA on high, 26EMA on low and 20EMA on close with the intent to use them as a channel for pullbacks based of ADX action. June of last year, the downtrend line was sharply broken but before that, the DMI made a significant move when the +/-DI swapped. Although this had happened several time during the past 4 years, what eventually became important is that the low of this candle was never broken while the high was continually tested and broken with the last time starting the recent uptrend. Also, note that during this time that the +DMI continued to make higher highs will not making lower lows. With the ADX moving above 20 in May of this year, a strong signal was given that the market was ready to move up. Now, consider the same discussion for ]Soybeans : Notice the size of the candle that caused the last swap. I’ve included a possible consolidation pattern. And for Corn : With Corn the interesting thing on recent action is that the DI’s changed dominance but did so where the swap was to -DI but with a green candle. I don’t see this too often but seems to give mixed signals.
OANDA:WHEATUSD
by mxb1961
GBPCHF Wedge On Daily TF On The Verge Of A Breakout ?This pair has been confined in a wedge on the daily chart and is poised to break out soon enough. Even its parent pair the GBPUSD has high probability to break to the upside. Further GBPCHF is testing a crucial resistance at the 1.29000 level and the pierce of this level on the weekly chart would make the H &S pattern complete, however the momentum to the downside might be limited as it can be met by multiple EMA resistance and ascending long term trendline! Therefore a move or breakout to the upside is a more favorable scenario to enter our trade. For the criteria to be met, the wedge needs to be broken on the daily chart and the price must break and close above 50 EMA. This will be followed by the retest of the 50 EMA. I will monitor this pair closely and in the favor of higher probability i prefer the break to the upside is a more likely scenario compared to the H & S pattern formation which will break to the downside. Stay tuned for any updates. Just a reminder i NEVER double my risk by opening two positions on the GBP pairs as it doubles the risk!. What i do look for is what GBP pair could give me a better risk to reward ratio and has the least path of support or resistance present. If you like the analysis follow me and stay tuned for any updates. cheers
Long
by FX618Analysis
Trading the DMI with ADX, TSI and EMA (WHEATUSD) PullbacksSo far, I’ve focused on how to get into the market based on the DMI swap in dominance between the +DI and -DI. Once you’re in or if you missed the original entry, how can you get into a trend while minimizing your risk. As I’ve noted before, I’ve not been able to successfully trade on a regular basis but my hope is to use everything I’m documenting here to change that. In one of the links that I shared in my first article is a PDF that has some really good stuff on using the PDF to trade breakouts. In it, there is a section on how to trade pullbacks within a trend using a 20 period EMA. In my charts, I use a combination of the 13 and 26 period EMA to sort of do the same thing (I use a range between the two vs. just one EMA). Full credit for the strategy is given in the PDF and the basics of it are outlined as follows: 1. The ADX must me moving up and above 20 2. Look for a price retracement to the 20 period EMA. It goes on to note that “usually the price retracement will be accompanied by a turndown in the ADX” 3. When price touches the 20 period EMA (in my case, when it enters the range or touches the 26 period EMA), “put a BUY STOP above the high of the previous bar” 4. Once filled, enter a protective stop at the newly formed swing low 5. If stopped out, re-enter the trade by placing a new BUY STOP at the original entry price 6. After a successful trade, the ADX must once again turn up above 20 before another retrace The PDF walks through this strategy as outlined above along with providing some examples. However, the examples are based on the same time frame as the original entry. I’d like to explore and propose that in a strong trend at the daily level, the 4 hour chart will provide a short term strategy. By applying the same concept to the 4 hour chart as outlined above then you may be able to find points that either provide opportunities to enter into an existing trend, or add to positions you may already have within the trend. As the 4 hour chart begins to show weakness and a breakdown below the 26 EMA, it’s possible this is an indication that the daily chart will now cycle through the same steps as noted above which would provide an opportunity take profit on existing positions while waiting for the next setup to enter with the trend on the daily chart. I’ve hi-lited areas on the 4 hour chart for WHEATUSD that fit into this strategy with the current up trend on the daily chart that started recently. Note, that the last area in yellow appears to be breaking down below the 26 EMA signaling that the daily chart may begin to cycle through it's own pullback.
OANDA:WHEATUSD
by mxb1961
5
Trading the DMI with ADX, TSI and EMA (BTCUSD)Continuing with using the ADX/DMI on a daily chart to trigger a trade with the 4 hour chart to refine the entry, I’ve marked up the recent BTCUSD action similar to the wheat chart in previous article. As you can see from the daily chart, price dropped on the 4th causing the DI’s to swap dominance on the DMI. With the ADX still above 25, this could be viewed as a good signal that a real change is occurring. On the 4hr chart, I’ve boxed out the day for the candle that caused the change and placed some entry targets for a possible retrace to enter. Again, as I noted at the end of the last article, the Wilder strategy would call for the sell to be placed at or below the extreme of the day of the change. However, this does open up the trade to more risk. By tracking the day and subsequent action on the 4 hr chart, it’s possible to reduce the risk by placing a stop order in the 25-75% range with a stop just above the high of the day. In this case, it would have worked however, there are cases which I’ll review next where the trade would have been missed.
BITFINEX:BTCUSD
by mxb1961