EMA Cross Over Strategy

 

EMA Cross Over Strategy :

 Most trader assume the trend is your friend and trade with the main trend of the chart. So h ow can we determine the direction of the trend either it is uptrend or downtrend? This strategy helps you to know the exact trend.

This strategy uses two exponential moving averages. (EMAs). First one is shorter period EMA and second one is longer period EMA. You can change the EMA value.

A bullish crossover occurs when the shorter moving average crosses above the longer moving average. This is also known as a golden cross.

A bearish crossover occurs when the shorter moving average cross below the longer moving average. This is known as a dead cross.

Here we are using 9 EMA and 26 EMA.

 

Buy rule : 

When 9 EMA crossover above 26 EMA we will buy at high of closing candle.

 

Sell Rule :

When 9 Ema crossover below 26 Ema w will sell at the low of closing candle.

 

Stop Loss :

Trail Sl according to 26 EMA . Keep SL and target minimum 1:2 .