This is a popular and highly effective trend-following trading strategy based on two Exponential Moving Averages (EMAs): 9 EMA (Fast) and 15 EMA (Slow).
Detailed Explanation of the Strategy
This strategy is built on three core pillars:
1. Identify the Right Trend (The Trend Is Your Friend)
Rule: Trade only when the market is in a strong uptrend.
- The 9 EMA is above the 15 EMA.
- Both EMAs are sloping upward.
This indicates short-term momentum is stronger than long-term momentum.
➡️ Only look for BUY trades in this condition.
2. Wait for a Pullback (Avoid FOMO)
- Do not buy when price is moving aggressively upward.
- Wait patiently for the price to retrace back toward the 9 EMA or 15 EMA.
- These EMAs act as dynamic support zones.
3. Risk Management (1:2 Risk-Reward)
Example: If Stop Loss = ₹100, Target = ₹200+.
Stop Loss Placement:
Below the entry candle’s low OR slightly below the 15 EMA support.
The 5 Best Entry Setups
Never enter immediately when price touches EMA. Always wait for a confirmation candle.
Price pulls back to 9 EMA. Look for a candle with a Long lower wick and small green body.
Logic: Strong rejection of lower prices.
After a bullish move, a small candle forms inside the previous candle near 9 EMA.
Entry: Buy when the next candle breaks the inside bar's High.
A classic Hammer (small body, long wick) forms at EMA support.
Trigger: Enter if the next candle closes above the hammer.
A large green candle completely engulfs the previous red candle at the 15 EMA.
After a slow pullback, a big green candle suddenly appears and closes strongly above the 9 EMA.
⭐ Ultimate Trading Checklist
Use this before taking any trade.
✅ Step 1: Confirm Trend
✅ Step 2: Wait for Dip
✅ Step 3: Entry Signal
✅ Step 4: Execution
© Ashish Mishra Trading | Educational Purpose Only

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