50 EMA Scapling Day Trading Strategy -- with David Moadel
hello and welcome to looking at the markets with david modell i've got an
interesting scalping strategy using the 50 period
moving average and this strategy does not work
perfectly it does not work 100 of the time i recommend testing it out
with demo or virtual trading with no real
money to make sure it works before you try it
and also use a stop loss i recommend so you do not have big losses okay so
uh i have the one minute candlestick chart up here on trading view okay each
candlestick represents one minute of price action in apple
stock all right so the one minute candles and
i've got in purple here the 50 period
exponential moving average the 50 ema 50 period exponential moving average
up there just one line and the one minute candles on apple stock pretty
simple right i've noticed and this does not happen
every time it is not perfect but i've noticed that oftentimes
when the one minute candles get moderately far above
the the 50 and then if it slams down if you bought right there then and just
took a long position okay and uh take a small position please
small position sizes all right and have a stop loss of
some sort uh but there's often times a bounce
right after that i don't know what it is about the 50 ema
i i'm not saying it's magic but i've noticed that if it goes
moderately far above it and then slams down on it if you bought
right when it hit that uh hit that 50. i mean look at that right there almost
perfectly look at the wick on that candle right
uh then there's a quick bounce and you can scalp it meaning you take a quick
profit all right you're not looking for it to go way way up here
you're just taking a quick small profit all right
and again you probably won't have a stop want to have a stop loss of some sort
maybe you could put another moving average below that
a moving average with the period number being bigger than 50
okay so it's probably gonna be below it and that could be your stop loss or you
could have a two to one ratio kind of thing you know uh two to one
meaning uh your profit target is twice as big as your
stop loss that kind of thing or you could have a trailing stop loss
whatever your exit strategy is please have one
okay so this is for intraday trading you want to have an exit strategy
all right so uh yeah it worked perfectly there but it does not work perfectly
every time okay and then uh got moderately far above the
line again and then slammed down against it if you
had bought right there nice little uh bounce there again you're
scalping you're not looking for big uh big profits every time you're looking
for small profits that add up okay now it did not get far above the 50
so you would not have taken the next trade
okay it didn't get far enough just a small
bounce and so you wouldn't have taken and it's a good thing because
you probably would have gotten stopped out all right it fell below it then it
got moderately far above the 50 again and it slammed down against it if you
had bought right here it didn't quite touch here it
touched on the wick of this candle went a little bit below it would you
have gotten stopped out depends on where you're where your stop loss is but it
only went a little bit below it and then really bounced
pretty hard okay so you might have profited on that one
if you had not gotten stopped out uh and then uh
so you could have scalped that went uh above moderately far above the 50
slammed down against it and then uh you know
quick bounce or even if you hadn't taken profits here
it gave you an even better bounce right after touching the 50 again
it gave you an even better bounce uh so then it touched the 50 again
and then touched it a couple times in a row but if you had bought
at either time at either touch of the 50 nice little bounce there okay so uh you
know worked pretty well at least on this screen does it work consistently
i cannot guarantee that so what you want to do is you want to test it out with
demo trading virtual trading if you can back test it if you're a
coder you know how to do coding you i encourage you to try and back test
it and see if it works for you see if it has a good uh you know success
rate that's what i'd like to see okay uh so respect your stop-losses be
safe and uh you know don't try a strategy just just because somebody in a
video says he likes it all right you want to
make sure it works for you okay hope you enjoyed this and have a
trading or investing plan i do offer plans for investors and
traders if you want coaching i do offer that you can email me for the coaching
at david modell gmail.com thank you so much for watching and listening i will
talk to you again soon
is