233 tick chart trading the 535 EMA - YouTube

welcome everyone this is John Sheely as director for research and development

for Iamadaytrader.com today we're going to take a look at how we can place

the trend information of the 610 tick bar to the 233 tick chart however

as always we must review our risk disclosures please review the disclaimer

very carefully trading carries a high level of risk and trading is not

suitable for all persons past performance does not guarantee future

results additionally we must include our

hypothetical disclaimer I am a day trader performs a tremendous amount of

research and back tests for our analysis please review the hypothetical

disclaimer very carefully here we're taking a look at crude oil plotted in

the 610 tick bar chart I have illustrated five exponential moving

averages we have an 8 EMA 21 EMA 34 EMA 89 EMA and the 200 EMA the EMA remember

stands for exponential moving averages now what I'm going to do today is to

demonstrate how you can analyze the price action and the trend of the 200

exponential moving average first take a look at the current price of the 200 EMA

51:41 that is the lower line of the 200 EMA a second exponential moving average

is the 89 EMA which I will discuss in greater detail in another video now

importantly notice that the slope of the 200 EMA is bullish and gradually rising

this is important because you are noticing that in the anchor chart of the

610 is in a bullish trend and prices are rising higher and higher in the next

slide we have two charts on the left side is the 233 tick bar and on the

right side is the 610 tick bar let's notice that you are seeing these

two charts on the single monitor in your computer a lot of traders are able to

have multiple monitors in which they can easily look at each chart in detail

however there are some traders who only have a single monitor such as a normal

laptop imagine if you had many more applications in your trading platform

such as the trading matrix our additional chart our other workspaces as

you can imagine the screen becomes very crowded for new traders traders are

frequently jumping back and forth trying to analyze prices and trends let me try

to easily follow the major trend of the 200 EMA in a single chart that chart

will be the 233 tick chart for today we're taking a look at just the 200 EMA

what is the first thing that is important in the chart first of course

it is the price 51.41 in this case it's the last price of the value of the 200

EMA what else is important in the general trend of prices we see that by

analyzing the slope of the moving average the 200 exponential moving

average is consistently rising to indicate a bullish trend now let's take

a look at the chart prices decline but they go to where right at the moving

average 200 EMA notice right here prices decline they barely just above the 200

EMA but as close are let's take a look at the prices here this is around 14.27

and we have a decline underneath the 200 exponential moving average but now take

a look at these same areas in the 233 tick bar chart I have plotted at the

bottom a blue dotted exponential moving average let's find the important

information as we've seen before first the price

51.41 this is the same that we saw in the 610 tick chart of the 200 EMA now let's

take a look at the chart in regards to the slope of the moving average this is

slightly dotted in the chart now notice prices are rising higher and

higher the slope of the moving average is exactly the same as we had in the

610 chart so remember we have two declines and they are just underneath

the exponential moving average in the dotted line here here here almost

touching and then this one gets underneath just a little bit and then

obviously we had a rally so in this particular case you're seeing the same

information in the 233 tick chart as we had the 610 here let me show you another

example a little earlier in time here we have a slope of the moving average this

is the 610 tick chart so what happened to this decline it gets just underneath

this average did prices rally yes they did

is this the bounce that we're always looking for yes price has got underneath

and we are able to rally and make a wonderful trade be nice if we could find

the same information in a different chart take a look at the chart now of

the 233 tick bar what do you see the prices have gone underneath bounced

around this average what is it 535 this is a 535 exponential moving

average which I'm showing you here is it is getting the exact slope it is showing

the exact price of which you can rally against this trade is in the same

direction that you're going to find in the 610 EMA so let's summarize

using the 535 EMA in a 233 tick chart only use the 535 in the

direction of the 610 anchor chart so in other words that 535 is going to be in

the same slope that you're going to find in the 610 secondly you can use the 535

EMA to enter trades based upon the price information of the 610 tick chart it's

very important we're all running notice the slope we're going to notice a

correction that touches and bounces above and below the 535 to set up a

trade just exactly as we saw in the 610 tick chart we will demonstrate in other

videos how to execute the bounce trades from the 610 anchor chart using a single

one chart the 233 tick chart finally the mastery is the key of success but so

many traders are not willing to take the time to master their trading strategy

well guess what that's what we do we are soon going to have your own room where

you can not only follow trades watch the information learn more about how to

trade and also use the strategies with great success this is John Sheely with

Iamadaytrader.com

you