8/10/2019 EMA 20 Rule.doc

1/3

Om Sree Ganeshaya namah.

Basic Rule:Long:Creation of white candle above 20 ema line which

a) is not touching 20 ema line b) does not have a black candle starting formation just after it. wait for the starting

line of the ne!t candle being formed)c) Is not created parallel to a few black"white candles above"on 20 ema line. i.e.

sideways movement). #eed to wait for a white candle forming as a breakout fromthis $one.

EXIT: Pivot resistance/PSAR proxi it!/"andle pattern showing reversal/SS

Short:Creation of black candle below 20 ema line which

d) is not touching 20 ema linee) does not have a white candle starting formation just after it. wait for the starting

line of the ne!t candle being formed)f) Is not created parallel to a few black"white candles below "on 20 ema line. i.e.

sideways movement). #eed to wait for a black candle forming as a breakdownfrom this $one.

EXIT: Pivot support/PSAR proxi it!/"andle pattern showing reversal/SS#slowstochastic$/e a % and &' relative position

A (ew conditions:%) &n the first '0( 0 minutes* better not any trade. +round %% am better time to startoff.,efore that if -& O/ crossover the mid oint) ha ens then trades can be initiatedafter at least first 10 minutes)* considering supportive PSAR and e a %/&' relative

positions and SS/RSI not near the e!tremes)

2) +lways be alert of PSAR crossing

1) Check osition of e a % line wrt e a &' line always.

) /o check trend use )'/*'%' ema ositions.') check out for nearest ivot Su ort or 3esistance stations.4) ignore small body almost do$i) candles for ema 20 signalling.

8/10/2019 EMA 20 Rule.doc

2/3

Special steps (or special openings and (irst hour+s trade

*$ gap up or down: *,/%' inute rule - &' e a rule - supportive PSAR and SS#slow stochastic$

&$ In the (irst hour #-. so e ti e$ i( ar et creates i ediate top and 0otto0! one / ore swings: Then high chance that the ar et will re ain range0ound (or ost o( the ti e with a chance o( sudden 0rea out/0rea down0ased on so e awaiting event/(oreign ar et reaction/ or last 1, inute+s trade 2

Strateg!: 3se SS#Slow Stochastic:4'/&' ga e plan$ - PSAR (or ultiple

trades within those i ediate top and 0otto range2

Re ain alert (or sudden range 0rea out or 0rea down 0e!ond thei ediate range #a0ove the top ost value or 0elow the 0otto ost$2 5atchA6R #advance decline ratio$2 7n this 0rea out or 0rea down: ta e properposition2

%$ 7pening near pivot (ulcru 2 8ood chance (or 0ig trend2a$ I( (irst hour#s$ re ain/s (lat: wait (or a good 0rea out or 0rea down: target

R*/S* 9use e a &' rule2

99 ust chec current ni(t! whether its a0ove or 0elow pivot (ulcru 2 6ependingon that get 0iased (or the ove ent #i2e2 0rea out or 0rea down$2

0$ I( in the (irst hour ni(t! oves up and down in a range creating i ediatetop and 0otto : then ight 0e it will 0e a chopp! da! with chance o(sudden 0rea out or 0rea down2 3se SS and PSAR as discussed in previouspoint nu 0er &

EXIT: Pivot support/PSAR proxi it!/"andle pattern showingreversal/SS#slow stochastic$/e a % and &' relative position

1$ I( opening at R* or S* #gap up or down$2 Then consolidation (or so e ti eexpected2 Brea out/0rea down can ta e !ou to R&/S& respectivel!2

Strateg!: *,/%' inute rule - &' e a rule - supportive PSAR and SS #slowstochastic$2

8/10/2019 EMA 20 Rule.doc

3/3

;ote:

The Pull0ac Trade

a$ &f the bias is u and rice is above ivot fulcrum* then wait for the market to assthrough 3% and then ull back.

+n entry order is laced above resistance* which in this case was the most recent high before the ullback.

+ sto is then laced below the ullback the most recent low) and a target set for 32.

0$ &f the bias is down and rice is below 5-* the market asses through S% and then ulls

back.

+n entry order is laced below su ort* which in this case was the most recent low beforethe ullback.

+ sto is then laced above the ullback the most recent high eak) and a target set forS2.