EMA strategy for chop! #trading #options #futures — Transcript

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1. 0:00you're probably trading your moving
2. 0:01average strategy wrong. And this is why
3. 0:04you probably have a tough time
4. 0:05navigating chop in the market like we
5. 0:07see here where we see three straight
6. 0:09crosses as the market consolidates. One
7. 0:12thing that I like to do is use my EMAs
8. 0:14in confluence with price action and
9. 0:17specifically in ranges like we see here.
10. 0:20It helps eliminate a lot of the chop by
11. 0:22establishing key highs and key lows in
12. 0:25price. Once my key highs and key lows
13. 0:27are established, I wait for price to
14. 0:30cross and break over or under in that
15. 0:34specific direction. So for this example,
16. 0:36the EMAs are cross to the downside and
17. 0:39we break below our lower part of our
18. 0:41range confirming that price might have a
19. 0:45strong trend to the downside here. And
20. 0:47we can see this is exactly where price
21. 0:50starts to trend down. This helps
22. 0:52eliminate the headache of trading in
23. 0:54chop. or if you're an OB trader and you
24. 0:58find yourself taking trades that don't
25. 1:01quite play out the way you want them to,
26. 1:04combining EMAs and confluence can help.
27. 1:07As we see here, the EMAs are still
28. 1:10pointing to the downside. And then a few
29. 1:12minutes later, we're trading in that
30. 1:14range. The EMAs crossed to the upside
31. 1:16and now this is where we see price begin
32. 1:19to trend.