Hi, Need a few clarifications or rather a confirmation that I have understood correctly :
01. When we look for 8 EMA level to go short or Long the level is as on close of the mkt today. Say 8 day ema of Nifty Spot is at 8056 and price is above 8 EMA ! As price moves the EMA also moves. We ignore the changed EMA level in RT and stick to the level 8056 , we had ascertained the previous day.
02. As Nifty spot crosses EMA and moves below it, we wait for 2/3 minutes and enter Short position. The entry of this Short may very from Trader to trader as some will enter after 15 seconds and some may be after 75 seconds. However irrespective of entry level, the SL level shall be 8083 (8057+27). Here again we do not look at the current EMA level on daily!
03. NS reaches 7986 we exit our short (8056-70) Here again we ignore the actual entry level and stick to the EOD ema level !
04. Entry/Exit and SL all are ascertained with respect to the EMA level of previous day !
05. A hypothetical situation : We enter short and before we reach target price again moves above the 8 ema ! We have to go long but at what level? SL is 27 points above 8 EMA but we need to enter Long when price crosses 8 EMA from below!