EMA

EMA Bounce Rules

• Prices should be above EMA 200 and mapped EMA also
• The price should break significant Support or Resistance
• In uptrend it should make resitance and in downntrend it should create support
• Check the retracement in PT
• Prices should always be above EMA in PT in Uptrend and below in Downtrend
• Draw a trendline and map EMA
• Then look for price crossing EMA
• Should exhibit strength or weakness
• There should be a crossover with the same big candle crossing EMA

Scenario 1: EMA Bounce or Divergence in CT

• Prices are above EMA 200 in PT
• Map Prices with EMA in PT
• Till the prices are above EMA in PT means the stock is trending up
• Map EMA on price in CT
• Wait for prices to go below EMA
• DO NOT TRADE if there is a REGULAR BEARISH DIVERGENCE
• In CT
  • Look for Divergence, Divergence can be on or above RSI 40
  • Look for small boxes/consolidation
  • Candlestick patterns
  • EMA Bounce

Scenario 2: Breakout

• Prices are above EMA 200 in PT
• Map Prices with EMA in PT
• Till the prices are above EMA in PT means the stock is trending up
• Map EMA on price in CT
• Wait for price to create a resistance in CT
• DO NOT TRADE if there is a REGULAR BEARISH DIVERGENCE
• In CT - Noise Handling is a must
  • EMA 200 + trendline
  • SACT
  • Price Action

Scenario 3: Divergence in CT

• Prices are above EMA 200 in PT
• Map Prices with EMA in PT
• Till the prices are above EMA in PT means the stock is trending up
• DO NOT TRADE if there is a REGULAR BEARISH DIVERGENCE
• In CT - wait for divergence
  • W pattern
  • Break of divergence
  • Price Action

Scenario 4: Patterns in CT

• Prices are above/below EMA 200 in PT
• Map Prices with EMA in PT
• Map Prices with EMA in CT
• Pattern break with big candle and volume should be below EMA 200 even if it against trend in CT

Scenario 4: EMA + RSI

• Prices are above/below EMA 200 in PT
• Prices are below EMA 200 in PT
• Current peak is lower than the previous peak
• In CT
  • EMA Bounce
  • Candlestick Pattern
  • Pattern Below EMA