EMA Cross Over Weekly Trades
Tools – Candlestick/Bar Chart (Daily), 150 EMA, 70 EMA and 20 EMA
Trade Setup – This is a trend trading system which gives enormous returns while trending markets and many whipsaws in non trending markets. Keeping our economy in view, this is going to be a profitable system in coming years as we are in an age of trending markets (either up or down). In this system we make use of 3 EMA; 150 EMA (Long term average), 70 EMA (Medium term Average) and 20 EMA (Short term Average).
Buy Setup – A typical buy setup occurs when the Short term average (20 EMA) crosses over the 70 EMA with the 70 EMA being above the 150 EMA. Same principle (but reverse) goes out for short trades.
Sell Setup – Exit the trade once the short term average (20 EMA) crosses the medium term average (70 EMA) form above.
Important Notes – To use this system effectively, exit the positions once you get returns in the range of 50-70%. Start offloading the positions once 50% return is on the cards.