EMA Crossover is one of my favorite indicators.
It is simple to trade using this indicator. We will buy or sell a stock when 1EMA crosses 200EMA in hourly chart with Stoploss little below or above 200EMA. In the below chart you can see how fabulous this simple strategy performs.
This strategy not only works in equities but in commodities as well and here is the gold chart for you.
It gave a sell signal near 33400 and currently gold is trading at 31800. The current profit is nearly 1.60 Lakh in the investment of 2 Lakh.
Most of the equity trades use this strategy in Banknifty Future Trading to make millions as this is one of those strategies who gets you highest reward on your risk. Last week we had a trade in banknifty where we bought it near 27125 and sold it 2400 points above our buy price which is 29500. The first target or a stop is always between 800 – 1000 points in banknifty after it crosses the 200 EMA in hourly chart and the second target is above 1500 points if it crosses 1050 points.
You can also use 1 minute time frame if you wish to use this strategy for intraday trading.
Please drop us a comment if you feel this has helped you or you have a question.