What's up guys? This is Flash with tradingwithflash.com. A girl left this comment in one of my previous videos. Well I covered the SMA or the EMA very briefly which I have. So this video covers how an SMA crossover works and the strengths of using the SMA in terms of swing trading or even intraday plays. So I hope you enjoy please if you need any assistance in trading or want me to make any videos on some of the indicators are any tips that you might need, please feel free to leave a comment below. Thanks for watching.
OK guys, I'm going to go over the EMA which is the exponential moving average, quite similar to the SMA slow moving average its just slightly different. In this case I'm going to use a 9 EMA and a 25 EMA. This question was actually asked by a girl in the comments, would I cover it, so this one is for you. So as I said I'm using a 9 EMA which is the green one and a 25 EMA. If you're looking at a short term intraday play you would be looking at a smaller EMA as if you're looking at a longer swing trading position you'd be looking at the 50 hundred and even 200 EMAs. I like to use all five of them but just for this video, I'm just gonna use to just to break it down nice and easy for you. The most simple practice in the EMA tactic is the EMA crossover which you can see right here.
This is a 15 minute timeframe so when it was trending below the 9 EMA showing a slight resistance start to break above the EMA crossed the 25 EMA right here which indicates a buy signal of an up trend. So from here you would of entered as soon as the 9 EMA crossed the 25 you would have entered let's say above the first candle settlin at five fifty eight. Great signal here of the cross.
You would have rolled it all the way up till the close of five eighty eight again. It came close to crossing it here. It didn't, it used it as a support which was great. Rolled the EMA all the way up until eventually crossing here, the 9 crossed below the 25 which indicated a slight down trend. If you're looking at a swing position always make sure, I use the 9 EMA along with the five orders I've named between the 9, the 25, the 50, the 100 and the 200 EMA. But what you're looking for on the daily or the 180 day is you always want to see the stock above the 9 EMA. If it's below the 9 EMA, it's not confirmed, it's going into a solid uptrend. So let's say back at this time frame here you would have waited for the break above the EMA and the confirmation upon it settling on the EMA for a safer trade. You would enter here about the 450 mark. Nice and safe conservative. Again you could've gotten above the dip but depending on your strategy. Rode it all the way up there to 670 would have been a great trade over a couple of days there.
So just bear that in mind the EMA crossover is one of the more strongest signals of either a buy or a sell indicator. So once again that was a girl that left a comment and I appreciate your feedback I hope the video helped. If you need any more assistance in terms of trading please leave a comment below. Thanks for watching. So guys if you are interested in taking the Learn Plan Profit Course there is a link in the description below and there's also a 25 dollars off discount code so help me help you. Also don't forget to click like unsubscribe. Thank you.