🧵EMA + VWAP STRATEGY
Every trader has a go-to strategy that works best for them. My trading is all about keeping it simple stupid and revolves around two indicators - Exponential moving averages and vwap.
Here's the strategy that I utilize on nearly 80% of my trades.
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What are Exponential Moving Averages?
EMA's are a type of moving average that places a greater weight on more recent data points.
8EMA = Exponential Moving Averages of the last 8 candle closing prices.
EMA's adjust with respect to chart time frame.
What is VWAP?
Volume Weighted Average Price - A key intraday indicator in my trading that offers the true average price based on price & volume.
Calculation: (Price x # of shares traded) / total shares traded
EMA's I use
- 8
- 21
- 50
While I do utilize the 50EMA, the 8 & 21 EMA are most important for this strategy. Some people use the 9 and 20 which are essentially the same thing. REMEMBER: EMA'S adjust with respect to time frames.
A+ Set Up Criteria - (What I look for)