An Easy Technique to Identify the Trend and Find High Quality Trading Setups

In this video, you are going to learn how you can stay on the right side of the trade and find highly profitable trades using EMAs. 

In this video, you will be covering: 

• The different types of moving averages and how they are calculated
• What to look for to easily identify short term trends
• How to perform top-down analysis using EMAs
• The exact step-by-step process for using EMAs to trade 

If you are more of the reader type - here is a recap of the topic covered in the video

The different types of moving averages and how they are calculated

What are EMAs? 

Definition 

The exponential moving average is an average price calculation over a certain time period that applies more weight on the most current price data causing it to react faster to price change.

EMAs are one of the most used indicators in trading for multiple good reasons: 

• better time your entries
• "predict" market turning points
• increase your winning rate

How EMAs are calculated? 

A moving average (MA) is calculated by calculating the sum of closing prices from a specified number of trading periods and then dividing the sum by the number of trading periods.

For example, a 20-day MA is calculated by taking the closing prices from the past 20 periods and then dividing the sum by 20. 

Two types of moving averages 

• Exponential Fast-moving, Early Signals
• Simple Slower, Strong Signals

We use 8 and 50 EMA to determine the short-term trend

• 8 EMA “Money Line”
• 50 EMA Trend Change Resistance

What to look for to easily identify short-term trends? 

• Bullish Cross: 8 EMA crosses up through 50 EMA

• Bearish Cross: 8EMA crosses down through 50 EMA

Check out of the video or sign up here to get access for free to Momentum Options Trading custom EMAs! 

How to Top-down Analysis using EMAs For Day Trading and Swing Trading? 

For Day Trading

• You will want to perform your top-down analysis using smaller timeframes such as 15m, 1hr, 4hr.
• If the price is crossing above your EMAs, you want to buy calls - and if they are crossing your EMAs, you want to buy puts.  

For Swing Trading

• You will want to perform your top-down analysis on longer timeframes such as 1hr, 4hr, and D.
• Again - If the price is crossing above your EMAs, you want to buy calls - and if they are crossing your EMAs, you want to buy puts.  

In the video, I also share an example with the exact process on how to execute this process on a chart on multiples timeframes along with the possible gains from it! 

Using this method, you could identify trading setups that can make you an exponential return of your money in just a couple of hours! Yes, determining the Trend and Finding Profitable Trades is THAT easy!

Click on the link below to get access not only to our custom EMAs indicators but also a free bonus and more training content!