EMA Crossover system -- huge earning potential

[techtrader2]

Stoch guy can you suggest some simple system which can be used for intraday which you find is profitable...

 

[SB2000]

Dear SB2000,

Does your conditions look like this,

Buy = 10dEMA crosses 20dEMA AND 10dEMA>20dEMA>50dEMA AND RSI(7)>50 AND StochK(7,10)<60;

Sell = vice versa;

Regards

MSA:

There are two entry setups here:

Condition 1:

10EMA Crosses 50EMA, RSI (7) oversold, Slow SToch (7,10) Oversold:

Go Long at the cross with SL using the day's pivot levels. The crossover can be traded with price movements of 5-10-15-20+ points. One can exit at RSI & SToch overbought levels. Howevere, if the crossover is a clear one where the angle of cross between 10 and 50 ema is almost 45 degrees then sit on the ride and enjoy for further upmoves. You can exit when the 10ema bulges down towards the 50ema.

Consition 2:

Prices move up the 20ema with RSI(7) and stoch (7,10) at oversold levels. This is a clear cut signal of an upmove which gives 10+ points ona long position.

I don not rely much on MACD as it gives a lot of whipsaws at times. However, I have started to use Aroon Indicator for figuring out the trend.

For shorts, just the opposite of the above.

I trade 5-6 times a day with 10 nifty lots for movement of 5-10 points if the market is rangebound (considering my broker is Ventura and brokerage is less).

The above strategy is relatively "safe". Being a technical trader, it helps to see if one has eneterd a wrong position and immediately reverses his/her positions for the day according to the market.