this is a very profitable and simple strategy. i use the same strategy using 10,20,50 ema on daily and 4hr chart. i use them as dynamic support/resistance.
I don't buy the concept of dynamic support and resistance - but the averages do provide a median price point and a general area to observe price action during mean reversion.
I've found that EMA's and *RANGE* bars work really well (not Renko bars). E.g. 3 Tick range bars on the /ES, long when > 55 EMA, short when under. Model/backtest that puppy.
I’m not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
The good thing with MT5 is that you can put the EMA periods as input parameters and test if those values are the best for the current market. The last point is valid, the lagging makes the signals come in too late, the only leading indicator is price itself, so you should focus on price in relation to the EMA.
yup back testing always look good , but in real time your mind is almost always thinking it can go either way , better to set your trade and put your stop loss and just walk away , check on it in intervals depending on the chart time and move your stop loss up if indeed, that is if you didn't get stopped out on those first few candles
I dont want to mess with your knowledge,but best thing you can do is observing on market,every day so you can get "synchronized" and know what to expect. But it take discipline,to be calm and not be in hurry for investing...and its boring i know
Listen every one, every single moving average work, if you understand better, no moving average without understanding tell you where you in and where you out.
The common response from far too many is "indicators don't work". Work? What is their definition of work? You are correct....you have to understand the information you are being given.
This is a pretty good video. Nice breakdown of moving avg crossovers. Nothing works 100% of the time but if you combine multiple pieces of data you can draw a clearer picture.Well Done Sir!
All in all a knowledgeable video about a questionable strategy. I think you nailed it when you said "price action", check out Brooks PA videos. Creating so many rules and special conditions just makes the decision late. It is a little funny that you suggest the viewers to do their own backtesting. I have to ask did you do any backtesting before posting this and if so what were the results?
There is nothing funny about telling viewers to do their own back testing before using a trading strategy. I do not trade this strategy therefore have no desire to do anything but a rudimentary test. Some however may find utility in this strategy and must do their own work. I have tested and don't find much of an edge in reading individual bars. Some price patterns I do like.
No disagreement here. The averages are really secondary to the other concepts talked about in the video. They do provide a framework for price and objective determination of trend and ranges.
I use moving average only as an indicator of what the trend is. I would never actually trade-off of them. I tried when I first became a trader only to realise that the chart is showing you what the moving average is showing you only the moving average is delayed so you probably missed some value.
@@duelcity8918 do you trade every flip? or do you use like a 150/200 ma and only trade in direction of the trend? ... what about whipsaw during sideways or extreme low volume times?
There are many ways to quantify a pullback. For this strategy, you can look for price to pullback somewhere between the averages. You can draw simple trend lines to highlight pullbacks. You can measure a 30% retrace of swings and look for an entry. You can look for momentum moves in price and ranging at the highs of the moves. It depends on the trader.
It would be helpful if - on your charts, the color/value per EMA is indicated. ie; is 55 red? or yellow or green??? you go thru the examples quickly and it's hard to determine. The upper left of your chart has all three EMA values, but it also needs to indicate which color each value is. Otherwise, very helpful video.
It means that price has moved above the previous swing (high) in the market. The definition of an uptrend is higher highs and higher lows. A new high.....is a higher high.
There is no one size fits all time frame. Some traders use daily signals while others use 1 hour. There is no best or safest period. Best thing to do is test out the time frame you could consistently trade.
@@Netpicks1 I like the 15 minute, then 1 hour, then 4 hour. The day chart hides all the small details. The 4 hour is best for seeing the big picture, 1 hour is best for perspective, 15 mins is best for investor sentiment. I call it the micro psychology of the moment.
@@lambyeeros In my own trading its the M-W-D-60 where the higher timeframes are used for structure. Investment including retirement accounts depend on the Yearly Quarterly and weekly
Are you changing the offsets on the EMAs so that they are moving a bit after or a bit in front of the candles? Feels like you can get other perspectives when to enter then.
That's a great question and I assume you are talking about displaced moving averages. I am not changing the offset however is you look at the Alligator indicator, it does: ua-cam.com/video/TmJTh4wPWJg/v-deo.html
@@Netpicks1 Thanks! That's precisely what I'm doing to test this strategy. I found that often times price moves significantly before any EMA crossing happens.
Any timeframe you choose to use must be tested using your understanding and trading rules. All times frames have good and bad qualities. More confirmation? Wait for too much confluence in variables will have you missing the move. Keep it simple.
There is no "should" and it depends on many factors including the volatility of your instrument. Testing is the only way you can come up with anything that may work well.
What do you think of using moving averages in your trading?
As long as there's a trend you can make it work
this is a very profitable and simple strategy. i use the same strategy using 10,20,50 ema on daily and 4hr chart. i use them as dynamic support/resistance.
Actually, I think averages are great to objectively determine a ranging market which can assist a trader in any type of breakout strategy.
I don't buy the concept of dynamic support and resistance - but the averages do provide a median price point and a general area to observe price action during mean reversion.
I've found that EMA's and *RANGE* bars work really well (not Renko bars). E.g. 3 Tick range bars on the /ES, long when > 55 EMA, short when under. Model/backtest that puppy.
I’m not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
Larry Williams was a proponent of 9 and 21 EMA, and incorporated the closing price into a strategy
Learned all 3 ema on charts before. Later I found this video confirms I was in right direction. 🤗
That's awesome!
As a beginner trader, Thank you! I have learned so much from this informative video.
Glad it was helpful!
I use SMA for understanding the price trend. Shifting to using EMA now. Thanks for the video.
You're welcome but understand that SMA and EMA should not be vastly different in terms of results.
So I’ve back tested this and my god it’s golden with my indicators (MacD , BBand, Volume profile, TTM squeeze )
Jay - which platform you were using to back test? @Jay the Trader
The good thing with MT5 is that you can put the EMA periods as input parameters and test if those values are the best for the current market. The last point is valid, the lagging makes the signals come in too late, the only leading indicator is price itself, so you should focus on price in relation to the EMA.
I love using the 95 and 125 HMA myself. And the 200 SMA for the direction.
How do you use them Joe?
This video lesson is excellent. Well done. Thank you
I have watched this at least 10 times. Its real eye opener thank you.
Have you tried it?
When in doubt, pull out.
Best of the Best video about Moving Average
Thanks for that.
Good video! I use the 3 ema strategy with the 9, 20, & 50 which is very similar to yours.
agree..3 ema crosing is one of the best tools., .. i use the advanced 3 ema indicator with arrows.
Another great tutorial. Thank you so much for taking time out of your day to make it. It is much appreciated.🙂
Glad it was helpful!
I use Ema 10, 20, 50 crossover especially in 5 min timeframe to take trade in Gold.
how's that working out for you?
You have just nailed it. Making trading become easier.
Love the ideas here, I say just use 8/21/55 though, as 8 is in the Fibonacci sequence, not 9.
Yes, it should not make any difference and if it did, we could say it is not a robust strategy to hang your hat on.
was already finding good results trading the 8/21 cross, adding the 55 helped save some potential losses though
how would you use the 55 ema with the 8 & 21
@@gbankz7935 use it the same as you would with the 9, 21, 55. It won’t make that much of a difference.
@@gbankz7935 What Hawkeye said. Also, 8, 21, and 55 are Fibonacci numbers if you like using them. 9 isn't.
@@hawkeyehowardinvesting3530 when do you enter and exit with that strategy?
While learning to trade and invest in forex market may seem intimidating. it is actually more simple than you think
Very Thanks. 3EMAs sometimes are crossing.... The "big winner".💖💖🌺🌺🌹🌹🌸🌸💝💝💟💟🎀🎀
You speak the truth..especially about considering other factors in your trade, which is the hardest part to calculate (i find) in real time.
yup back testing always look good , but in real time your mind is almost always thinking it can go either way , better to set your trade and put your stop loss and just walk away , check on it in intervals depending on the chart time and move your stop loss up if indeed, that is if you didn't get stopped out on those first few candles
Beautiful lessons for trading here
I dont want to mess with your knowledge,but best thing you can do is observing on market,every day so you can get "synchronized" and know what to expect.
But it take discipline,to be calm and not be in hurry for investing...and its boring i know
Perfect. Thank you.
You're welcome!
Listen every one, every single moving average work, if you understand better, no moving average without understanding tell you where you in and where you out.
The common response from far too many is "indicators don't work". Work? What is their definition of work? You are correct....you have to understand the information you are being given.
Precious video for trading. Highly recommended.
Wonderful video. Need to watch it couple of times
Nice. Very simple and easy to comprehend. Thanks!
Glad it was helpful!
Love from INDIA
I need to improve checking SH SLs before entering trades after crossovers.
Excellent video btw.
Thanks John. Seeing the resumption of the trend via structure is pretty important.
This is a pretty good video. Nice breakdown of moving avg crossovers. Nothing works 100% of the time but if you combine multiple pieces of data you can draw a clearer picture.Well Done Sir!
Thanks for that!
Informative and nice video
Love how easy to understand this is
Thank you, we have been backtesting your strategy it will improve our timing in/out immensely.
Thank you for the video.
i use 12hma,26 hma rsi9 and bb without lines
Thanks for sharing your strategy. This video is helpful.
All in all a knowledgeable video about a questionable strategy. I think you nailed it when you said "price action", check out Brooks PA videos. Creating so many rules and special conditions just makes the decision late. It is a little funny that you suggest the viewers to do their own backtesting. I have to ask did you do any backtesting before posting this and if so what were the results?
There is nothing funny about telling viewers to do their own back testing before using a trading strategy. I do not trade this strategy therefore have no desire to do anything but a rudimentary test. Some however may find utility in this strategy and must do their own work. I have tested and don't find much of an edge in reading individual bars. Some price patterns I do like.
Powerfull entry technique, Much aprecciated !!
Good stuff in here. This was a nice valuable post.
Making Money with Technical Charts. Chart is God for Me.
We use 10, 20, and 50 ema's since their equivalents are 1/16, 1/8, and 1/4 of a year
I guess the number is just arbitrary and subjective to the trader
No disagreement here. The averages are really secondary to the other concepts talked about in the video. They do provide a framework for price and objective determination of trend and ranges.
It does. And every traders has different views on how the market goes.
@@Netpicks1 Please, make a video for tradding in a range line !
Bro i use 10,20 but how to using both three? 10,20,50?
Thank You That Was Excellent
Hope that strategy is working out well
Thank you for the information.
Our pleasure!
Good content and technical analysis keep up the good work
I use moving average only as an indicator of what the trend is. I would never actually trade-off of them. I tried when I first became a trader only to realise that the chart is showing you what the moving average is showing you only the moving average is delayed so you probably missed some value.
it's a lagging indicator for sure . . But I've been using the 3/8/20 exclusivley for years now! Almost never fails
@@duelcity8918 do you trade every flip? or do you use like a 150/200 ma and only trade in direction of the trend? ... what about whipsaw during sideways or extreme low volume times?
@@duelcity8918 are these EMA's, and which time frame sir ?
Good job, Thank you sir. Plz explain about pullback trade. How to identify that zone? In day trading???
There are many ways to quantify a pullback. For this strategy, you can look for price to pullback somewhere between the averages. You can draw simple trend lines to highlight pullbacks. You can measure a 30% retrace of swings and look for an entry. You can look for momentum moves in price and ranging at the highs of the moves. It depends on the trader.
Very simple and very understandable, without any platforms
Thank you for the knowledge I will definitely test out your strategy👍🏾👍🏾
amazing vid keep up the work
Thanks!
Great video. very informative and detailed on EMA. Thanks helped a lot.
Glad it was helpful!
Evergreen.... can be use anytime and anywhere.. thanks 👍🙏
Yes 😊
Hey Bro great strategy is very easy use EMA always
Thank you by post video hugs!!!
Yup excellent video must know strategy.
It would be helpful if - on your charts, the color/value per EMA is indicated. ie; is 55 red? or yellow or green??? you go thru the examples quickly and it's hard to determine. The upper left of your chart has all three EMA values, but it also needs to indicate which color each value is.
Otherwise, very helpful video.
Thanks Keith.
This strategy soo clutch im trying to combine this with slow stochastic. Of course with some basic S/R levels, has anyone tried this?
How did it go after 7 months? curious
Amazing information. Thank you
Our pleasure!
Good Strategy. Thanks.
You're welcome
Nice & clear, thanks
You're welcome!
AWESOME video,really like the power points
Wonderful and lovely. God bless.
You nailed it .... thank you
Awesome video …. much appreciated.
Glad it was helpful!
Excellent quality top stuff
Much appreciated
Could u please mention the 9,21,55 EMA's in Color's?
9 - Redish
21 - Blue
55 - Yellow
this is most likely short term to me I used 2 ems for swing trade
thanks guys, this is so useful !
Glad it was helpful!
Thanks for reply
It's really good bro.
Ty!
super sir, i am using this strategy
Really great..............thanks ..............a lot.............
You are most welcome
Great video thanks for explaining it.
what does it mean for the swing high to be taken out?
It means that price has moved above the previous swing (high) in the market. The definition of an uptrend is higher highs and higher lows. A new high.....is a higher high.
Best strategy thank
Thanks alot
I am using 11, 21 moving average
Great video
thank you so much now it has clicked
Glad it helped
nice valuable. thank-you
You are welcome
Ema 9 is what
21
51.
Elaborate 9 is High or low or close
Similarly all are 21 and 51
Please reply to me
All are set to close
what time frame you use for your EMA ? 1h 4 h 1D ? what is the best and safest period?
There is no one size fits all time frame. Some traders use daily signals while others use 1 hour. There is no best or safest period. Best thing to do is test out the time frame you could consistently trade.
@@Netpicks1 I like the 15 minute, then 1 hour, then 4 hour. The day chart hides all the small details. The 4 hour is best for seeing the big picture, 1 hour is best for perspective, 15 mins is best for investor sentiment. I call it the micro psychology of the moment.
@@lambyeeros In my own trading its the M-W-D-60 where the higher timeframes are used for structure. Investment including retirement accounts depend on the Yearly Quarterly and weekly
Hi, when setting up EMAs it must be done on price change, each tick or bar closing. Thanks
People generally use closed for simplicity
@@Netpicks1 thanks
Are you changing the offsets on the EMAs so that they are moving a bit after or a bit in front of the candles? Feels like you can get other perspectives when to enter then.
That's a great question and I assume you are talking about displaced moving averages. I am not changing the offset however is you look at the Alligator indicator, it does:
ua-cam.com/video/TmJTh4wPWJg/v-deo.html
Great lesson, thanks!
Would you use the same values for trading Crypto?
I wouldn't waste too much time adjusting values. Far too many combinations to work through. Adjusting time frames would be an easier adjustment.
@@Netpicks1 Thanks!
That's precisely what I'm doing to test this strategy. I found that often times price moves significantly before any EMA crossing happens.
Thanks
Nice explanation... on Which timeframe good for intraday or scalping and can we use any other indicator for more confirmation??
Any timeframe you choose to use must be tested using your understanding and trading rules. All times frames have good and bad qualities. More confirmation? Wait for too much confluence in variables will have you missing the move. Keep it simple.
This is great (THUMBSUP)
is this for forex only?
No. You can try it out on any liquid instrument.
Sir make a vedio on price action.
On what aspect specifically? We do have many on the channel that covers that wide-ranging topic:
ua-cam.com/users/Netpicks1search?query=price+action
Simple is better!
I could not make out what each color represent in terms of the EMA lines, is yellow - 55 green-21 and red-9 day respectively?
That would be correct
good
Can we use this 9, 21, and 50 ema on any timeframe ?
You could but understand the lower time frames may have more erratic crosses of the averages.
Hi, on a chart, the 9-21-50 EMA (on any timeframe) is almost identical to the William Alligator indicator with std settings, very very close.
The big difference is Alligator uses displaced moving averages: ua-cam.com/video/TmJTh4wPWJg/v-deo.html
Thanks for the video, can this be used on nasdaq 100?
I have not tested it on that. You'll want to test instruments and time frames as you build your trading plan for it.
Which EMA's should I use when I am using 10 min candlesticks?
There is no "should" and it depends on many factors including the volatility of your instrument. Testing is the only way you can come up with anything that may work well.
what if I use the 6,14,26 EMA ... do you think it makes a substantial difference?
Not really. You will get the 26 crossings quicker so you may face whipsaws as price whips around.
Not much. But you’ll probably want to test them both out so you can see the difference.
what do you mean by swing high swing low areas?
Markets make higher highs and lows in uptrends. Lower highs and low in downtrends. The turning point of each market swing...is the high or low area.
This strategy is for intraday or swing trade ?
Good