EMA Trading Technology - For Intraday Or Swing Trades

[indrajit_16]

Folks,

Today, I want to discuss a trading technique that may be of interest of fellow traders. I have created and published an auto End of Day analysis of Nifty and its component stocks. The auto-analysis is available every trading day after 8 PM. Take note of the 5 and 20 EMA levels for the individual stocks or Nifty. Choose stocks which has closed above their 5 EMA levels for the first time after a sell-off for a long play. Similarly choose stocks which have closed below their 5 EMA levels for the first time after a smart rally for short play. The strategy is to enter the stock near the opening price next day or in any pull-back towards 5 EMA levels and hold them for intra or even positional trades with a trailing stop 1 or 2 tick above / below the 5 EMA level. A look at RSI-2 can save traders from false trades. That means don’t buy a stock where RSI-2 is above 95 or dont short a stock when RSI-2 is below 5.

Any question from the members are welcome in the subject. Also, the above theory is well applicable to Nifty.

Regards,

Indrajit

 

[indrajit_16]

The following EOD image of Nifty is self explanatory.

Regards,

Indrajit

 

[vikas_batra]

nice work indrajit ji

 

[indrajit_16]

One stock that has blasted today after crossing 5 DMA in intraday trading is ABB. It has closed above its 5 DMA. Watch it on Monday for long play with a stop 1 tick below the 5 DMA. The EOD chart of ABB is attached below.

A few stocks that have performed well as per the 5 EMA technique is Sunpharma, ACC and Maruti. Readers can have a look in the EOD charts . Your comments are welcome.

Regards,

Indrajit

 

[karthikmarar]

HI Indrajit

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For more info go to http://www.traderji.com/technical-analysis/ads/index.ph...tes&uid=100000

 

[pkgmtnl]

ok, can U give the formula for it for MS or amibroker? Is it be applied on EOD data?

 

[pkgmtnl]

Bhai inderjit,
can u give some EMA based trendline for trading in NIFTY, equity for Intraday?
Is so can u plz provide formula?

 

[indrajit_16]

PKG,

I am not a big master of Metastock or Amibroker, so I compiled all EOD charts of Nifty-50 stocks in one place where I can see at a glance which of the stocks are closer to 5 EMA or have closed above or below the 5 EMA after a swing. I do the research manually from my page.

If u wish to add a formula for buy try the following:

Cross(CLOSE,Mov(CLOSE,5,E)) AND CLOSE > Mov(CLOSE,5,E)

For more improved formula u can ask Metastock experts in Traderji.

Regards,

Indrajit

 

[pshirurkar]

Nice work mr Indraji 16
thanks.

 

[rkkarnani]

Folks,

Today, I want to discuss a trading technique that may be of interest of fellow traders. I have created and published an auto End of Day analysis of Nifty and its component stocks. The auto-analysis is available every trading day after 8 PM. Take note of the 5 and 20 EMA levels for the individual stocks or Nifty. Choose stocks which has closed above their 5 EMA levels for the first time after a sell-off for a long play. Similarly choose stocks which have closed below their 5 EMA levels for the first time after a smart rally for short play. The strategy is to enter the stock near the opening price next day or in any pull-back towards 5 EMA levels and hold them for intra or even positional trades with a trailing stop 1 or 2 tick above / below the 5 EMA level. A look at RSI-2 can save traders from false trades. That means dont buy a stock where RSI-2 is above 95 or dont short a stock when RSI-2 is below 5.

Any question from the members are welcome in the subject. Also, the above theory is well applicable to Nifty.

Regards,

Indrajit

RSI-2 = RSI of 2 periods , in this case 2 days!!!

Have I understood correctly?