13 EMA Golden-cross 50 EMA in Hourly

Most of the readers will not understand what this means. However, the ones that do will definitely read it further and try to benefit from it. I know I did…

Technical traders love to read charts, trade off of indicators, chart-patterns, trend lines, support & resistance, and you name it. For me — the one thing that matters the most is — Price point. And I believe a study that captures the price by heart is — Moving Average. There are valid reasons as to why one would go with an EMA (Exponential Moving Average) vs. a SMA (Simple Moving Average). For the purpose of this article, I will not go into that explanation. Just know that I like to use 13 and 50 EMAs in hourly as my short-term signals to trade.

Best way to show is by an example:-

Bullish Trade: Once I establish an overall daily trend, I drill down to a shorter time frame to time my entry and manage my risk. Always like to take a starter position. Once the trade starts moving towards the intended direction, I add as it crosses a certain price point (resistance).

The chart below is of a company called Vicro Corporation ($VICR). Clearly the overall trend is bullish. Now what would be a good time to enter, so you improve your risk/reward, and at the same time not get whipsawed because of intraday moves.