![]() ![]() 30-periods Weighted Moving Average (WMA).9-period Exponential Moving Average (EMA).Originally, the 9/30 trading setup was developed by Mike Burns and involves using a combination of two moving averages: ![]() Let’s first start by defining what is the 9/30 trading strategy and then learn how to use the 9/30 trading setup along with some advanced trading concepts.ĥ Final Words – 9/30 Trading Strategy What is the 9/30 Trading Setup We’re going to share with you how to improve your game when using moving average trading strategies. You can learn a better way to use technical indicators and improve your strategy here: Best Combination of Technical Indicators – Market Maker Methods. Most popular financial shows on Bloomberg TV and CNBC will often make reference when the stock prices (or major stock indices) get near these moving averages. Traders and investors usually pay close attention to key moving averages (9 MA, 20 MA, 30MA, 50 MA, 100 MA and 200 MA). The moving average indicator is probably one of the most popular trend indicators out there. Unlike the EMA crossover strategy, which is more used for reversal trading signals, the 9/30 trading strategy is used to ride the trend. Make sure you hit the subscribe button, so you get your Free Trading Strategy every week directly into your email box. If this is your first time on our website, our team at Trading Strategy Guides welcomes you. Additionally, the 9 and 30 EMA trading strategy will teach you how to trade pullbacks and ride the trend. ![]() Through this trading guide, we’re going to share the 9/30 trading setup which is based on a simple moving average trading strategy. 200 day EMA is a good indicator of a long term trend.įor newbies, you can put the odds in your favor by only taking buys in an uptrend (aka “Buy the dips”) or sells in a long term downtrend (aka “Sell the pullbacks”).Learn what is the 9/30 trading strategy that successful traders want to hide it from you. Ideally, only take LTF (lower time frame) trades in the direction of the HTF (higher time frame)Īlso, the long term positioning of EMAs helps avoiding whipsaw trades (whether 14/50 EMA are above or below the 200 EMA on the daily chart). Lower timeframe is more subject to noise and false signals, so it’s not recommended under 1h. If you’re in an overall sideways market, you may want to drop down to a timeframe or two to do shorter term EMA crossovers (4h or 1h).īCH is an example of where this strategy would get whipsawed in a sideways trading range, without catching a substantial uptrend.ĮMA crossovers work on any timeframe, you can use lower time frames for shorter trades and higher timeframes for longer. EMA crossovers work best in trending markets. This happens in times of sideways consolidation. That is, it may signal Buy only to signal Sell soon afterwards. This strategy, like many others using indicators, has a weakness – it may lead to whipsawing. (note that our performance calculations use closing price one day after crossover day, to be conservative) Here’s it’s clear: when EMA 12 crosses below EMA 50, or hits our Stop Loss level. Often, timing trade exit (at a loss or profit) is the toughest part. The great part about this approach is that it gives clear trade entry and exit signals.
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