Trading with EMAs by G'daytrader

#1
hello there...
first of all i want to thank SH (315) for the inspiration of my tactic. Someone could call it ?2050 EMA system.
Question mark? Because it depends from few factors and you will pick the proper one.

Lets start with the basics..
1. First you find a stock that has good volume, price more than 10$ or whatever..
2. Avoid high volatile stocks or time periods (e.g. look at 4.)
2. This stock must love touching EMAs specially in 30 min (where i prefer trading).
3. This stock should move smoothly on the EMA as possible. The most the better.
4. Don't trade when you expect new data..or before the open of US or any similar.
5. There is no need to watch many stocks. If you have found the right stock or the stock that suits in your style, you will get at least on signal for profit each day.

You must find the third EMA that is suitable for your stock. Look among EMA 8-9-10-11-12. I have found mine. Usually this stock moves smoothly (when i say smoothly i mean it touches the EMA frequently and has no many spikes) on this EMA even it goes down or up.

So we assume that you have EMA 10 - 20- 50.
Your basic EMA trading line is 10. There is no need to say when you play long or short. When 10 and 20 is under 50, so short and vice versa.

You take a trade when the candlestick touches the EMAs. It depends from the side as you can understand. If we are going to down, we act like this..

10 under 20 under 50...

It touches 10 , we short it asap. Then we put our profit goal. Mine is 1% or 0,8%. As soon as we get it, we cover.
We do this as many times we can.

The worst scenario is the change of the trend. This means that the next candlestick and i consider the body will close above EMA 10, so we loose money.

Two choices. Either we wait to touch the EMA 20 (but we do really fast moves in order to minimize our loss or have a small profit) and then short it again or we cover our trade in the next touch of 10 (from above).
Because 90% the stock will touch the EMA 10 from above soon. Possible at the next candlestick or after this. Indeed we will loose some cash but it wont be catastrophic. You will be close with your initial position, perhaps little higher.

Then either you play long trading above EMA 10 (this is what i do but taking very small profits) or short on 20 EMA.

When the stock touches EMA 50 short it anyway. The stock will react for sure. You will get easily 1-2% at least.
(everything vice versa for the long scenario).

In the mean time this system offers high safety in sideways markets because
you will only loose the cash from the fees of your brokers. You will sell and buy on the EMAs all the time except if you can reach your profit margin.

I trading this system for a significant period and offers me a 80% success.
However i know very well the market, technical analysis where it helps me improve my collections and bla bla..

In case you want to make any question , you are welcome.
I know that i could explain my system little better but i am trading in the same time...:lol:

be well and play clever!!
 
#2
Don't be greedy...2 or 3 times the day will be enough...be patient to find the best conditions..
There is no need to trade all the possible cases...trade the best ones.

The best usually profitable trade is the case when the body candlestick
brakes the small EMA..then if the next candlestick touches the EMA again, trade it..
 
#3
The tricky situation is when small EMA and 20 are closing their gap and
the candlesticks are among them...be quick and no greedy..
You will get opportunities but with small margin....

I will remind you that i trade only in 30min charts.
 
#4
Hi,

My age is 31 and i want to invest 2000 rs per month for my family future in HDFC top 200.I have Lic(41778 yearly,ppf 2000 /month)
but i do not have idea about "HDFC top 200".
Please help me with suggestion how it woks and what should i do.


Thanks
Rajesh
 
#6
This strategy has another good advantage...you become familiar
with the chosen stock...you get experience about its reactions and etc..
this help you to be more accurate with your trades...you will gain trust in your actions..
 
#7
when the candlestick start to cross more than 2 times each EMA , i am starting to be cautious because it seems that the stock wants to break it...
So i usually trade 2 in the raw touching EMAs..no more...
 

sparun

Active Member
#8
hello there...
first of all i want to thank SH (315) for the inspiration of my tactic. Someone could call it ?2050 EMA system.
Question mark? Because it depends from few factors and you will pick the proper one.

Lets start with the basics..
1. First you find a stock that has good volume, price more than 10$ or whatever..
2. Avoid high volatile stocks or time periods (e.g. look at 4.)
2. This stock must love touching EMAs specially in 30 min (where i prefer trading).
3. This stock should move smoothly on the EMA as possible. The most the better.
4. Don't trade when you expect new data..or before the open of US or any similar.
5. There is no need to watch many stocks. If you have found the right stock or the stock that suits in your style, you will get at least on signal for profit each day.

You must find the third EMA that is suitable for your stock. Look among EMA 8-9-10-11-12. I have found mine. Usually this stock moves smoothly (when i say smoothly i mean it touches the EMA frequently and has no many spikes) on this EMA even it goes down or up.

So we assume that you have EMA 10 - 20- 50.
Your basic EMA trading line is 10. There is no need to say when you play long or short. When 10 and 20 is under 50, so short and vice versa.

You take a trade when the candlestick touches the EMAs. It depends from the side as you can understand. If we are going to down, we act like this..

10 under 20 under 50...

It touches 10 , we short it asap. Then we put our profit goal. Mine is 1% or 0,8%. As soon as we get it, we cover.
We do this as many times we can.

The worst scenario is the change of the trend. This means that the next candlestick and i consider the body will close above EMA 10, so we loose money.

Two choices. Either we wait to touch the EMA 20 (but we do really fast moves in order to minimize our loss or have a small profit) and then short it again or we cover our trade in the next touch of 10 (from above).
Because 90% the stock will touch the EMA 10 from above soon. Possible at the next candlestick or after this. Indeed we will loose some cash but it wont be catastrophic. You will be close with your initial position, perhaps little higher.

Then either you play long trading above EMA 10 (this is what i do but taking very small profits) or short on 20 EMA.

When the stock touches EMA 50 short it anyway. The stock will react for sure. You will get easily 1-2% at least.
(everything vice versa for the long scenario).

In the mean time this system offers high safety in sideways markets because
you will only loose the cash from the fees of your brokers. You will sell and buy on the EMAs all the time except if you can reach your profit margin.

I trading this system for a significant period and offers me a 80% success.
However i know very well the market, technical analysis where it helps me improve my collections and bla bla..

In case you want to make any question , you are welcome.
I know that i could explain my system little better but i am trading in the same time...:lol:

be well and play clever!!
pls explain in detail
 

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