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

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

Related Readings and Observations

Rajandran R

Rajandran is a trading strategy designer and founder of Marketcalls, a hugely popular trading site since 2007 and one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies. More From Rajandran R »

17 comments… add one

  • Amirishali June 4, 2009, 8:15 pm

    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.

    Reply
  • Rajandran June 4, 2009, 9:20 pm

    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

    Reply
  • Amirishali June 5, 2009, 9:35 am

    Thanks Rajandran I will try this strategy.

    Reply
  • Anonymous September 5, 2009, 3:52 am

    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?

    Reply
  • s nagarajan February 13, 2010, 8:16 am

    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…

    Reply
  • mahender January 18, 2011, 7:51 pm

    please tell me how to calculate ema high,ema low with stock examples

    Reply
  • Rajandran R January 19, 2011, 6:37 am

    @Mahender… no need to calculate 5 EMA. Just check with icharts.in these basic indicators are available there

    Reply
  • kalyan January 19, 2011, 3:49 pm

    in amibroker this can be set . this strategy also works in intraday.

    Reply
  • mahender January 19, 2011, 7:57 pm

    TO MR RAJANDRAN

    THANK YOU,BUT IAM UNABLE TO FIND 5DAYS EMA HIGH,LOW WITH ICHARTS,KINDLY
    HELP ME

    Reply
  • mahender January 25, 2011, 1:51 pm

    can anybody tell me how to calculate ema high,low with examples

    Reply
  • Vinay January 25, 2011, 7:30 pm

    Dear Mahender,

    If you are using any chart tool… plot 2 lines of 5 ema’s
    1) select 1st ema select open price
    2) select 2nd ema select close price

    -Vinay

    Reply
  • Reghulal January 27, 2011, 6:38 pm

    by anay chance cha i have AFL code for EMA crossover 3 and 15 plzzzzzzzzz.

    Reply
  • mahender January 27, 2011, 7:11 pm

    TO MR VINAY
    I HAVE TRIED WITH ICHARTS BUT I AM UNABLE TO GET EMA HIGH,LOW,WILL YOU PLEASE EXPLAIN WITH AN EXAMPLE CHARTS

    Reply
  • Akki March 8, 2011, 6:28 pm

    Hello

    Sir can you help me calculate MySar from 5ema? if I have taken out 5ema of nifty then how to calculate the mysar from it I have open high low and close with me please tell me how to calculate mysar

    Regards

    Reply
  • hrishikes July 24, 2012, 8:41 am

    How to set EMA High, Low in I charts?

    Reply
  • arjun July 24, 2012, 9:52 am

    @Hrishi,
    in icharta, u can not put EMA Hi/Lo in java (J-charts). But you can plot them in Charts Premium.
    Don’t have an idea regd Platinum charts.
    For Charts Premium Plot it like EMA ( High,5)

    Reply
  • vivek February 4, 2013, 9:24 am

    Thank you…..

    Reply

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    • Rajandran is a Market Analyst and founder of Marketcalls, one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies.