iCharts Discussions

SID2060 · White Belt Joined: 04 Nov 2009 Posts: 319

Hi friends,

I have started this new Thread to share some good strategies which is useful both for swing trading as well as short term trading views.. The strategy is very simple and it works. It uses the most widely used technical tool that is Exponential moving averages...

In this strategy we will use two different ema combinations in daily charts....

1) ema 5 and ema 13 crossover

2) ema 9 and ema 18 crossover

WHEN TO BUY????

A ) Suppose ema 5 have crossed ema 13 from bottom to upside but ema 9 have not yet crossed ema 18 from bottom to upside. In this case one should wait for the confirmation of ema 9 to cross above ema 18.....

Stoploss or profit booking is when ema 9 cross below ema 18 from upside down.........

B ) Suppose ema 9 is still above ema 18 but ema 5 have crossed ema 13 from upside to the bottom side. In this case two things can happen afterwards:

1 - ema 9 also crosses ema 18 from upside to the bottom side

2 - ema 5 reverses and crosses ema 13 from bottom to upside

If No-1 happens its the confirmation to do short selling. The scrips having futures can be shorted for swing trading as short positions in cash scrips without F&O have to be squared off the same trading day.....

If No-2 happens then its a new BUY SIGNAL and one can take fresh LONG positions............

WHEN TO SELL?????

C ) Suppose ema 5 have crossed ema 13 from UPSIDE to DOWNSIDE but ema 9 have not yet crossed ema 18 from UPSIDE to DOWNSIDE. In this case one should wait for the confirmation of ema 9 to cross BELOW ema 18.....

Stoploss or Profit Booking is when ema 9 crosses ema 18 from DOWN TO UPSIDE.........

D ) Suppose ema 9 is still BELOW ema 18 but ema 5 have crossed ema 13 from BOTTOM to UPSIDE. In this case two things can happen afterwards:

1 - ema 9 also crosses ema 18 from BOTTOM TO UPSIDE

2 - ema 5 reverses and crosses ema 13 from UPSIDE DOWN

If No-1 happens its the confirmation to TAKE FRESH BUY POSITIONS........

If No-2 happens then its a new SHORTSELL SIGNAL and one can take fresh SHORT positions............

REGARDS,
SID artist

SID2060 · White Belt Joined: 04 Nov 2009 Posts: 319

Plz find the attached charts below for the strategy...............

Sanchit · White Belt Joined: 03 Jul 2010 Posts: 46

HI,

I was just backtesting and i think this is a brilliant strategy for intraday as well... AEOM

SID2060 · White Belt Joined: 04 Nov 2009 Posts: 319

I am only indulged in swing and positional trading. Have not tested this strategy for intraday but nice to hear that u r getting good results in intraday too. Best of luck dude.