Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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

38 sec read


 

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
Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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24 Replies to “Simple Rules to Trade Using 5 EMA(LOW-HIGH)”

  1. 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. 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. 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. 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. 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. 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. 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. @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)

  9. Dear Rajandran,

    We are at terrible point.

    At were it is written take previous value of ema to calculate new value of ema based on current closing price.

    we are stuck. THe first value which is Moving avg of N period is the starting point for calculating the EMA for next value.

    We tried the universal formula. But value are not matching.

    We are not able to match the numberrs, that are avaible in charting package like sharekhan to calculate 5 ema and 10 ema.

    We cant afford to buy expensive charting package to test the module.

    Kindly help and reply in my email soon.

    Saurabh

  10. hii,
    could u plz tell me if we apply stoploss with 5ema then why there is more loss.

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