4 ema theory

#1
dear all....
i would like to have ideas and views of seniors and experience traders on the following ...

for a laymen who want to buy some stocks on eod basis and to hold it till the trend ends.. I mean trying to catch the trend in eod basis.. the best thing i think is ema.. now whats my thinking is two bigger emas like 50 and 100 ema cross overs decides a longer trend i suppose.. and small emas like 10 and 20 decides a short term trend .. now the idea is to buy at a small ema cross over with a condition that the bigger ema crossover is positive .. i mean buy when 10 ema crosses 20 ema with a condition that 50 ema is above 100 ema .. and sell when the 10 and 20 ema crossover in opposite direction ...

is this idea workable.. any good articles on this or some reference material .??
 

sudoku1

Well-Known Member
#2
dear all....
i would like to have ideas and views of seniors and experience traders on the following ...

for a laymen who want to buy some stocks on eod basis and to hold it till the trend ends.. I mean trying to catch the trend in eod basis.. the best thing i think is ema.. now whats my thinking is two bigger emas like 50 and 100 ema cross overs decides a longer trend i suppose.. and small emas like 10 and 20 decides a short term trend .. now the idea is to buy at a small ema cross over with a condition that the bigger ema crossover is positive .. i mean buy when 10 ema crosses 20 ema with a condition that 50 ema is above 100 ema .. and sell when the 10 and 20 ema crossover in opposite direction ...

is this idea workable.. any good articles on this or some reference material .??
prudency is entering trades ONLY in d direction of d large trend while sitting idle on d oposite may save a lot frm whipsaws.:)
 

sudoku1

Well-Known Member
#4
didnt get what u want to tell sudokubhai
AS per ur theory, if i wer 2 trade den if 50 is abv 100 den i wil take only buy n sell trade wen smaller averages 10 is abv 20.
bt on d other hand if 10 pierces below 20, i wil jst exit longs n NOT GO SHORT bt in fact wait 2 take another trade wen 10 again crosses abv 20. hope u got it:)
 
#6
Please don't trade MA crossovers.

you must understand market structure and how trends work to trade trends properly.

when a trend is up, there will times when it will consolidate before it goes in the direction of trend. During this time MA crossovers will fail and you will lose money, only to find out the trend continued and you missed the move.

Sometimes price will trend and consolidate and if consolidation takes a long time, the breakout direction will be uncertain and trends can reverse also.

Also Markets don't trend all day everyday..most of the time is spent in 'trying to get in to consolidations' and then consolidations and then 'trying to get out of consolidations'.

your MA and MA crossovers systems will fail miserably during these times.
 

bunti_k23

Well-Known Member
#7
Hello masterstroke , dont plot ema s on chart if u want to trad wit ema s learn macd coz macd is made up of ema crossovers and is the best indicator too....
 

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