GOLDEN CROSSOVER Golden Strategy

27 Nov 2021

INDICATORS USED:
EMA 4
EMA 9
EMA 18

TIME FRAME FOR ENTRY/EXIT: 5 min

WORKS VERY WELL ON BOTH NIFTY AND BANK NIFTY

As you can see on the chart that when EMA 4 crosses EMA 9 and EMA 18 together then the crossover of EMA 4 is golden crossover.
This is the bookish definition...Now let's look at the applications with complete trading setup

This strategy works well only on a trending day...

STRATEGY:
BUY once there is a golden crossover as shown in the post below:


SELL once there is a golden crossover as shown in the post below:


SOUNDS very simple and it is indeed but works well only if the day is trending...simple price action or anchored vwap strategy.

Let's look into the STOPLOSS and TARGET:

STOPLOSS:
Place stoploss BELOW EMA 18

TRAILING STOPLOSS:
EMA 4,EMA 9, EMA 18 acts as a good support...Place the trailing stoploss below any of them depending on your setup...(EMA 18 is preferred)

TARGET:
This strategy does not provide and fixed target...Keep trading until the trailing stoploss is hit. (Captures almost entire trend on a trending day...that's why it is best for trending days)

EXAMPLES:
SELL

As you can see on the chart how beautifully EMA 4/9/18 are respected by the market on a trending day...and 250 points of move was captured in NIFTY 50.
BUY

Similarly 230+ points were captured and the market again respected these moving averages

FALSE SIGNAL:


This strategy is not a holy grail...it will give many false signals in a non trending day...so using this strategy along with price action will make it a lot more accurate. DO KEEP IN MIND THAT ANY STRATEGY WHEN FOLLOWED WITH PROPER RISK MANAGEMENT AND POSITION SIZING WILL ONLY GIVE PROFITS IN THE LONG RUN...

If you have any doubts in this strategy do let me know in the comments...would love to answer them asap

FOLLOW ME for more such content ahead...Till then,
HAPPY TRADING :)