Are you trading/taking Buy or Sell decisions based on 20 day EMA. The below picture will tell you how 20 EMA is inefficient in picking up the trends.
Just a quick update for Nifty hourly futures from the GCI Trading software(Metatrader platform) using 5 EMA Channel offset trading system. Currently the hourly resistance is near the upper 5-13 EMA Channel offset i.e @ 6100. Longs are recommended only if nifty surpassed and holds above 6100
Here is a simple logic how to plot 70min/ 1030min EMA in your amiboker software. 70/1030 EMA crossover is a popular strategy witht the yahoo 5min charts. And if your tried with amibroker with the same 70min and 1030 min you would probably end with the wrong ema plots as the maximum limit of the EMA parameter is limited upto 300 only.
Here is a basic video about trendlines and moving averages explained in a common layman language. Still if you are not aware about the power of the moving averages and still struggling with the basic technical analysis then this video could be a good start to enhance your knowledge in basic technical analysis of any kind of stocks.
Nifty is trading in a rangebound zone between 5EMA(High)-5EMA(Low) zone for the past 4 days. 13 EMA is added along the 5 EMA(High-Low) strategy. After applying we could find that additional EOD resistance zone is near 4853. A Strong overhead resistance is near to this point.
Here is the simple,popular and classical positional EMA strategy that works good in a very good volatile market. In this strategy we use 70/1030 EMA crossover to take buy or sell decisions.
Go short at today’s close if both the 5 and 10-day exponential moving average (EMA) cross below the 20-day EMA. Close the position at today’s high when both the 5 and 10-day EMA cross above the 20-day EMA. Nifty Chart shows the 5-10-20 EMA movement for the the past one year. And the results are simply amazing Source: www.marketcalls.in
Nifty : 2656 Nifty today closed just below 200min MA as shown in intraday(03,Dec,2008) nifty chart. Which indicates bearishness for tommorow. Let see How Nifty opens tommorow Source: www.marketcalls.in