Trading Strategy v.

1
A Simple strategy for swing traders or
even for cash market people…

Before proceeding ahead, let me make it

clear that the strategy mentioned below
is not an holy grail strategy, if you are
parting with stock market measure risk
before taking any position as stock
market returns are not like fixed deposit
returns, if you donʼt measure risk donʼt
make any position in stock market.

Strategy is formed using three

exponential moving average, many people
underestimates moving average as a tool.
There is no just one right way to use
moving averages. It can be used to find
out the trend of the market, dynamic
support resistance in the market, and can
even use to figure out the exact pin point
for buying or selling. Kindly note, this
strategy will work only in trending market.

If you are not aware about what is moving

average than take a break and please
click on the below mentioned link to get
basic understanding of the same.

https://twitter.com/rachitpjain/status/102
8111826972602368?s=19

Setup :

Apply EMA 50 to high price,

Apply EMA 15 to close price, and

Apply EMA 50 to low price.

Buying Conditions

15 EMA (black color) should cross above

all the moving averages.
Buy as soon as the above condition is
met.
Place your stop just below the recent
swing low.
Take profits when the 15 EMA falls to
touch the 50 EMA/reaches first trouble
area like facing resistance from strong
resistance zone or any reversal conditions
like pin bar formation/ bearish
candlesticks clue…
One can also look for pyramiding
opportunity when stock comes near
50EMA and price not sustaining below
the 50EMA.
Time Frame - 4hr/ Daily/ Weekly…
You can also form intraday strategy using
the same logic just use smaller time
frame like 5/15 min or 3/10 mins..

In similar manner one can utilise the same

setup for going short
15 EMA should cross below all the moving
averages.
Sell as soon as the above condition is
met.
Place your stop just above the recent
swing high.
Take profits when the 15 EMA rises to
touch the 50 EMA/reaches first trouble
area like facing support from strong
strong zone or any reversal conditions like
pin bar formation/ bullish candlesticks
clue…

In above setup if you mix knowledge of

candlesticks/support & resistance/ chart
patterns it will work more smoothly.

Follow me on my twitter handle

@rachitpjain for more market related
updates.
Cheers..!!!

Keep Learning..

Keep Earning..

Disclaimer :
I am not a SEBI registered advisor, Any
Advice or information on this document is
general advice for education purpose
only and does not take into account your
personal circumstances, please do not
trade or invest based solely on this
information. By Viewing any material or
using the information within this doc. you
agree that this is general education
material and you will not hold any person
or entity responsible for loss or damages
resulting from the content or general
advice provided here. If I post something
here that you find helpful as you build or
manage your portfolio, thatʼs wonderful
but do not consider it as a financial
advise.

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