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

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Comments

  1. Amirishali says

    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.

  2. Rajandran says

    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

  3. Anonymous says

    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?

  4. s nagarajan says

    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…

  5. Vinay says

    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

  6. mahender says

    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

  7. Akki says

    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

  8. arjun says

    @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)

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