9 and 30 EMA 2-Step Trading Strategy -- with David Moadel
hello and welcome to looking at the markets with David Modell I wanted to
give you a super simple two-step strategy and just want to let you know
ahead of time that this strategy is not guaranteed to work it does not work 100%
of the time and I recommend you test it out with
demo trading or virtual you know paper trading that way you'll know if it works
for you before you commit any real capital to it
and then if you do decide to use real capital please use small position sizes
and always respect your stop losses now this strategy it doesn't really matter
as far as I can tell or at least it does not specify what candle sticks you use
I've got the Apple stock one-minute candles up here but you know these
moving averages should adapt to whatever candlestick you're using whether it's 1
minute 5 minute hourly or even daily candlesticks for swing traders it should
you know the moving averages should still you know adapt to the candlesticks
alright so here are the two steps and it does not tell you where to put your stop
loss or anything like that or where to exits just where to enter so you want to
put the nine and the 30 exponential moving averages on your chart the nine
and the 30 okay so let's take a look at that again alright on trading view calm
here I've got the 30 EMA is in blue that's the slower moving average and
then the faster moving average that's the nine period EMA and that's an orange
alright so there you go alright so so yeah so you got the nine
of the 30 up there and then you wait until the nine EMA is
above the thirty EMA because with this strategy the idea is you only want to be
going long when the trend is up you don't want to go long when the trend is
the overall trend is down or sideways so much as up up is better okay and so so
you won't even be trading here which is good because if you had taken a long
position if you had bought here then you know down down down right and you would
have gotten stopped out so you wouldn't have traded at all here you would have
waited until the nine clearly goes above the thirty EMA okay but that doesn't
mean you're buying it we're just saying that's a precondition
okay you don't buy until the nine is above the thirty and you need something
else to happen so here's part two you buy when a candlestick closes below the
nine all right below the nine EMA okay so you're not trading at all here but
after the nine goes above the thirty then you wait okay so you're still not
buying yet you're waiting until a candlestick closes below the orange line
here the nine okay might be a different color on your chart
alright it's interesting in the candle on Apple here just happened to stop at
the at the blue line but that has nothing to do with it it closed below
the orange line the nine and that's when you'd get in okay and you want to set
your stop loss in your profit target and I have other videos where I talk about
those okay this strategy just tells you when to get in if you want to all right
and then so you're in and then as you can see it worked out pretty well here
and the idea is you're buying a short-term dip or a quick dip within an
a longer-term overall uptrend okay and so this can get you into that habit of
buying a dip but not buying a dip when its overall trending downwards you're
buying just a quick dip when it's over all training upwards so you're not
fighting the longer-term trend alright you're just a dip buyer within the
overall trend and the overall trend is determined by
the nine being above the 30 but that short-term dip is determined by the
candlestick closing below the nine all right
so there you go that is literally two steps or not even two steps two
conditions both of which have to be true before you would consider getting in and
where you place your stop loss and where you put your profit target I have other
videos that talk about that so I encourage you to check out all of my
videos and to subscribe if you haven't done that already please subscribe right
now and give this video a thumbs up and leave a comment if you appreciate it and
that way you're encouraging me to bring more videos with ideas and not every
idea works perfectly in fact none of these ideas work perfectly so use
caution at all times all right thanks a lot I appreciate it I'll talk to you
again soon