Swing Trading ( 50H-50L-15C is an example) is the trading style which aims at capturing movement in price of a stock, commodity or security for a time-period of few days or weeks.
The ‘Swing Trading’ style is typically based on technical analysis of level over chart. This is sometimes also used in mix with fundamental analysis of price levels of security.
There are many trading strategies based on swing trading and we are today publishing the well-known ‘moving average’ based strategy called 50-50L-50C strategy.
Disclaimer : No strategy in this world is ‘profit-only’ strategy. If there is a strategy which claims a success rate of 100%, then it is surely a false claim.IndiTR.com
So while we teach you strategy, we don’t claim that it would always give positive result. But if traded with conscience and stop-loss, would fetch you good results.
Needless to say, this is only for educational purpose. Neither the author, nor the website can be held for any gains/losses with this strategy.
50H-50L-15C : Strategy Details
50H-50L-15C stands for Exponential Moving Average of 50 day high, 50 day low and 15 day close.
The strategy is formed using three exponential moving average. Most of us think of moving average as a simple indicator with not much use i.e. it is often underestimated as an indicator. However, when this strategy is followed religiously, it yields very good results in trending market.
It can be used to find out the trend of the market, dynamic support resistance in the market, and can even use to figure out the exact pin point for buying or selling.
Strategy Setup for 50H-50L-15C
Note : We are using TradingView charts to show the setup below.
- Candle Duration : 10 Minutes or 15 Minutes for Intraday, 4 Hour or 1 Day for Swing.
- Candle Type : Simple Candle
- Indicator 1 : Exponential Moving Average – 50 Day on High Price
Buying Scenario : When to Buy
- 15 EMA clos (black color) should cross above all the moving averages.
- Buy as soon as the above condition is met.
- Place your stop just below the recent swing low.
- Take profits when the 15 EMA falls to touch the 50 EMA/reaches first trouble area like facing resistance from strong resistance zone or any reversal conditions like pin bar formation/ bearish candlesticks clue…
- One can also look for pyramiding opportunity when stock comes near 50EMA and price not sustaining below the 50EMA.
Sell/Short Scenario : When to Short
- 15 EMA should cross below all the moving averages.
- Sell as soon as the above condition is met.
- Place your stop just above the recent swing high.
- Take profits when the 15 EMA rises to touch the 50 EMA/reaches first trouble area like facing support from strong zone or any reversal conditions like pin bar formation/ bullish candlesticks
Follow this strategy under observation. It is recommended that you paper-trade before following this as not every strategy suits trading style of different people.