Simple Rules to Trade Using 5 EMA(LOW-HIGH)

Simply Intelligent Technical Analysis and Trading Strategies

Simple Rules to Trade Using 5 EMA(LOW-HIGH)

4 June 2009 1,515 views 7 Comments

USE EMA -5(LOW) and EMA-5(High) instead of using 5 EMA.

Rules

If the stock/Index trading above 5 EMA(High) – trend is expected to be up with support at 5 EMA(High)and next level of support comes near 5 EMA(low)

If the stock/Index trading in between 5 EMA(low) and 5 EMA(High) trend is expected to be rangebound between 5 EMA

high and 5 EMA low with resistance at 5EMA(high) and suppport at 5 EMA (low)

If the stock/index trading below 5 EMA(low) then price is expected to be trend lower with resistance at 5 EMA low and next level of Resistance comes near 5 EMA(High)

Try applying for both Weekly and Daily Charts to know the exact trend

Its good to Catch the stock/Index at 5 EMA low- EOD with stop loss below 5 EMA-High

Rest its good to look at the 3 month Nifty chart with 5 EMA(High – Low) Indicator.

Also Implemented in our Nifty EOD Tool as displayed in the right corner of the page

to guage the EOD Supports and Resistance

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7 Comments »

Amirishali said:

Dear, Can u plz guide me how to calculate 5 EMA HIGH & LOW.From charts I can get 5 EMA value but where can I get High & Low for 5 EMA. eg: 5 EMA value for NIFTY FUT(JUNE4) is 4508 (JUNE 4 closing is 4582).How can I calculate 5 EMA HIGH & LOW.THANKS IN ADVANCE.

# 4 June 2009 at 8:15 pm

Rajandran said:

Hi Amirishali,You can use Incredibe charts or icharts.in to use find 5 EMA(High low values) or else visithttp://tradeinniftyonly.blogspot.com/ here heis publishing the values for hourly,daily,weeklyNifty

# 4 June 2009 at 9:20 pm

Amirishali said:

Thanks Rajandran I will try this strategy.

# 5 June 2009 at 9:35 am

Anonymous said:

Sorry im new to trading, are those values suppose to ema -5 (low) and ema +5 (high). Or is it suppose to -5 and -5 for both high and low.How does that happen?

# 5 September 2009 at 3:52 am

s nagarajan said:

Sir, Your guidelines are good. Just a clarification is requested. When you say, – Its good to Catch the stock/Index at 5 EMA low- EOD with stop loss below 5 EMA-High – is it for shorting ? Please confirm. If it is for going long at 5 EMA – Low, 5 EMA – High should be the first Target. Am I right ? Please advise. Thanks…

# 13 February 2010 at 8:16 am

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