Swing or Investment Theory

Swing or Investment Theory for generating Buy & Sell signals at strong levels

📖 EMA Retracement Theory
The 200 EMA (on multiple timeframes – 4H, Daily, Weekly) is treated as a backbone trend line.
When price pulls back (retraces) to the 200 EMA after a rally or fall, it often acts as a decision point:

Either support (in an uptrend) → bounce = Buy signal.
Or resistance (in a downtrend) → rejection = Sell signal.

✅ Buy Signal (Strong Level)
Market is in uptrend (price above 200 EMA).
Price retraces down to touch or slightly break below EMA 200. and RSI shows oversold zone.

A bullish candle pattern or reversal confirms.
👉 Enter Buy with stop loss just below EMA.

❌ Sell Signal (Strong Level)
Market is in downtrend (price below 200 EMA).
Price retraces up to touch or slightly break above EMA 200. and RSI shows overbought zone.

A bearish candle pattern or rejection confirms.
👉 Enter Sell with stop loss just above EMA.