Here is a thread on how I use one of my favorite indicators for intraday setups, the 9EMA:⬇️
Before jumping in, you first need to know what the 9EMA represents, and how EMA'S differentiate from SMA'S.
Now that you have a general understanding of both, let me show you how I use the 9EMA effectively both ways. The highlighted line below is your 9EMA.
Breaking down this $AFRM chart, we can see at the highlighted candles on the 5m chart, that the 9EMA was unable to hold as support.
Once broken, you can see the rejection happening at the 9EMA as the chart continues in its downtrend. When we experience that rejection, it would be a good put opportunity as that is the confirmation we need.
Once we take our position, we must take what the chart presents to us. If something is continuously experiencing rejection at the 9, we can let some of our position ride. The first sign we must look for before exiting fully is a break back above the 9EMA with confirmation.
Confirmation differs depending on who you talk to, but i personally look for a close over the 9, or close and backtest of the 9 for the confirmation I need. A wick through is not confirmation as we must wait until that candle fully closes. This will help you against fake outs.
Now lets take a look at how I would play the 9EMA in an uptrend reversal. You can see here on $LCID, that after our morning flush, we confirm back over the 9 and begin riding it for quite a while.
The same concept and strategy applies before jumping in. We wait for confirmation on whichever timeframe we use, we do not prematurely jump in. This will give us a much higher probability of success. You can see below we ride the 9EMA for almost 2 hours.
Again, we could let part of our position ride as we scale out on the way up, and look to exit on the break of the 9.
Whether you use the 5m, 15m, 30m, or whatever timeframe you use, I suggest giving this strategy a try. It can be very lucrative if you get good with it. I hope this thread was informative and help you in some way!
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The following thread will change the way you trade forever, if you listen:⬇️
I want to talk to everyone about something that is absolutely crucial when it comes to being a succesful trader, hindsight. "Hindsight Trading" as I like to call it, is the speed bump you must get over before you can find any long-term strategy or success in the market.
So what exactly is "Hindsight Trading" and how does it affect newer traders in the market? Hindsight trading is when we convince ourselves we could have predicted an outcome after the fact.