Thread by @RStrading99

MOVING AVERAGES:
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In this thread,I am sharing about moving averages,its key strategies,entry,exit,target everything..
These strategies are scalable to all timeframes,instruments etc

Simple thinks works in the market.

#Nifty50 #StockMarketindia #banknifty #movingaverage

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MOVING AVERAGES:
Moving average is simplest method to understand and trade.Most common moving average is SMA,which totals close price over a certain period,then divides this total by number of period.Ex:10 SMA would calculate close price of last 10 period and divide sum by 10

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EXPONENTIAL MOVING AVERAGES:
I prefer EMA,as it put more weight on recent price data when calculating moving average. It will react quicker than to sma.

What ema I use
13-short trend
34-intermediate trend
55-long trend

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STRATEGIES:

1)PULL BACK
2)BREAKOUT
3)CROSSOVER

MISCONCEPTIONS

Moving average are not only to trade crossovers.Moving averages are used to identify trends and it provides dynamic support and resistance.

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PULL BACK

The idea of PULL BACK is to buy the dips and sell the rips in the established trend.

When market trends either bullish or bearish ,all three ema trends at 30° to 60° angle which indicates a strong trend

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HOW TO TRADE PULL BACK:

Wait for the market to pull back to test either 13 or 34.Price can close beyond 13 ema but not beyond 34.
The zone between 13 and 34 is the trigger zone to enter the trade. The entry is triggered when price closes back above or below 13 Ema

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Rules for entry:

All ema should be 30° to 60° trend angle
The price must close above/below 13ema after the trigger zone to enter the trade

Rules for exit:

Use trailing stop (atr,parabolic)
Fibonacci extension as target
Pivot based S/R
S/R levels

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BREAKOUT:

When market trends ema trends along with the market.
When market remains sideways/consolidation,ema's will be flat.This indicates a major breakout is going to happen.
To confirm breakout we use triangle and consolidation breakout price action patterns to trade

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The breakout trades are quite straight forward.Traingles and rectangles are powerfull price action patterns works in all timeframe.EMA are used to identify these . Intraday,swing,investors can use these patterns to make money.

Depth of the triangle,rectangle is the target.

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CROSSOVER:

Most used setup in the market,when shorter ema crossover or below longer ema,the entry signals are fired.

13 ema crossover/below 55 is entry signal.Exit signal is also crossover/below.

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Many combination of ema can be used for trading.Based on backtest used your system wisely.

Use longer ema for trend confirmation to avoid noises.

For ex: 3ema and 5ema for crossover,21ema for trend confirmation to avoid trade against trend.
Most useful for scalpers

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Don't try to trade straightaway in the live markets. Do Some backtest and deploy it along with your system.Price action and indicator combination can do wonders in the market.

Everything I shared is for all traders and suits whether you are scalper or investor

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Your like,comments,retweet,and follows help me a lot to share such efficient for all.kindly share with your fellow traders.
Any inputs are welcome.
Currently I'm trading 920 straddle and I'm studying these systems for directional trades

-@RStrading99