4H trading strategy using Exponential Moving Averages and Candlesticks.

Introduction.
Friends jab ham indicators, candlesticks pattern and time frames kay best combination say aik strategy manage karain to is say hamain bahut achi trading opportunity milti hay. 4H time frame main ager EMAs aur candlesticks pattern ka aik combine kar kay ye strategy banayain to bahut achi earning possible hay.

Components of 4H trading strategy.
Is strategy kay two main components hain.

First EMAs.
Jis main three EMAs shamil hoti hain, jo 23 period EMA, 38 period EMA aur 200 EMA hain.

Second Component Candlesticks pattern.
Is main two main candlestick patterns use hoty hain, aik Bullish/Bearish pin bar candlestick aur dusra Bullish /Bearish Engulfing pattern.





Purpose of EMAs.
Trading strategy main 200 EMA trend ko specify karny kay liye use hoti hay, jabkeh 23 and 38 period EMAs support and resistance levels ka kam karti hain q keh price in he zones main bounce karti rehti hay.

Purpose of Candlestick patterns.
Price jab support per bar bar bounce karti hay to aik waqat ata hay keh woh isko break kar laiti hay. Support zone say price bounce ya trend reversal ko ham daikhty hain aur bullish candlestick pattern ka yahan per wait karty hain. Is tarah support zone per candlestick pattern ki addition trend reversal ka imkanat barha daiti hay. Is liye ham is is price action ko candlesticks pattern ki help say strategy main use karty hain.

Trading setup (bullish / bearish).
Bullish trading kay liye 4 hour time frame ko select karna chahiye, iskay bad 200 EMA price say nichy ho aur bullish trend dikha raha ho. Iskay bad bullish pin bar ya engulfing candlestick ko daikhain jo support zone (23&38 EMA) ko reject kar rahi ho aur price 38 EMA ko reject kar rahi ho. Jab hamain pattern aur EMAs ki confirmation ho jaye to ham bullish main buy trading kar sakty hain aur stop loss lower price point say some pips down per lagana chahiye. Isi tarah bearish setup kay liye. Bearish trade kay liye 200 EMA bearish trend dijhaye aur price 23&38 EMAs ko resistance zone say reject kar rahi ho. Jab hamain bearish trend ki confirmation in conditions say mil jaye to sell order place karna chahiye aur stop loss high candlestick say some above pips per lagana chahiye.





Rules for 4H trading strategy.
Iskay simple and strict rules yehi hain keh ham EMAs and candlestick patterns say jo signal lain un he per trading karain aur unko ignore kar kay inverse side per order place na karain. Iskay ilawah isko back test karny kay bad he live trading main use karain.

Re: 4H trading strategy using Exponential Moving Averages and Candlesticks.

Exponential moving average simple moving average ki tarha he hoti hai jo kisi bi period of time ma trend ki direction ko find karny ma help karti hai. But en both moving average ma tora sa difference hota hai. Simple moving average simply price data ki average ko calculate karti hai. Jb kay exponential moving average ma zayada weight current data ko di jati hai. Exponential moving average market ki price ko simple moving average ki nisbat bhot closly observe karti hai. Es topic ma ham exponentail moving average ko mazeed explain karyn gy.



Working of exponential moving average.

Simple moving average kay same rule use kaye jaty hain exponential moving average ko interept karny mai. But ye bat mind ma rakhni chahe kay EMA price movement sy zayada sensitive hoti hai. Ham ye bi keh sakty hain kay ye do dari talwar ki tarha hoti hai. Ik side par ye SMA ki nisbat market kay trend ko find karny ma zayada asaniya mohaya karti hai. Other side ki bat karyn to EMA SMA ki nisbat zayada short term changes ko experience karti hai. EMA ko trend ki direction find karny kay laye use kiya jata hai but esko use kar kay trade tb karni chahe jb EMA ki value rise kar rahi ho. Ap us time par buying ko consider kar sakty hain jb EMA zero kay kareeb dip kar jati hai. Same es he tarha ap selling ko consider kar sakty hain jb price EMA kay above move karti hai. Moving average ki base par support or resistance areas ko bi find kiya ja sakta hai. Rising EMA support price action ko show karti hai or fall EMA resistance price action ko indicate karti hai. So ye buying ki strategy ko reinforce karti hai jb EMA rise kar raha hu kiu kay price action support ko predict kar raha hota hai. Same es he tarha EMA jb fall kar raha ho to ye selling signal mohaya karta hai kiu kay price action market ki resistance ko show kar raha hota hai. Sari moving average or EMA bi market kay top or bottom sy trade ko designate ni karty. Moving average apko help karti hai kay trend ki direction ma trade ki jaye. But es ma entery or exit points ma delay hota hai or EMA ma delay kam hota hai jb esko SMA sy compare kiya jaye to.

Calculation of EMA for trading strategy.

Apko ye bat notice karni chahe kay EMA kis tarha EMA ki he previous value ko calculation ma use karti hai. Es ka matlab ye hai kay EMA har price ko current value kay tor par include kiya jata hai. New price data ka moving average pae impact bhot zayada hota hai or old data ka minimum effect hota hai.

EMA = [K x (C-P)]+P

Where

C = Current price, P = previous period EMA and K = exponential smooting constant.

Re: 4H trading strategy using Exponential Moving Averages and Candlesticks.

H4 Candle with Exponential Moving Average (EMA)

Dear Friend, exponential moving average aik technical indicator ha jis ko Patrick Mulloy na develop kia, is ma hm 2 exponential moving averages ko use kartay hain, ye price changes par quick responce daita ha jis ka mtlab ye ha k day traders aur swing traders in sa acha faida hasil kar saktay hain, is indicator k zariay hm price ki uptrend aur downtrend ma strength ko b maloom kar saktay hain, ye hmain support aur resistance k baray ma b achi infirmatiin daita ha,



Working Mathod of EMA

Exponential Moving Average indicator range bounded markets ki bjay trending markets ma behtar results faraham kartay hain, is ma crossover signals bht commonly use hotay hain jis ma hmain exponential moving average ki line ko price bars sa cross karnay ka wait karna parta ha, ya short term EMA ko long term EMA ki crossing par depend karna parta ha jis sa trend ma change zahir hoti ha, ye crossovers normal EMA's sa jaldi respond kartay hain, jis sa hmain trend reversal ka jaldi pata chal jata ha, isko hm dusray signals ya anaylisis techniques k sath combine kar k yse karnay sa achay results hasil kar saktay hain,



Average Calculation And EMA Multiplication

Exponential Moving Average ki calculation k liay hmain pehlay step ma simple moving average maloom karna parta ha, 2nd step ma exponential moving average find kartay hain aur final step ma hasil shuda exponential moving average ko 2 sa multiply kar k us ma sa smooth moving average ko minus kar daitay hain, EMA divergence ko b identify karnay ma helpfull ha ye Hull moving average k similar ha, jb b 2 EMA crossover kartay hain prices ki moment reverse ho jati ha.



Analysis Using Exponential Moving Average

Trader or investor EMA ko market analysis k lae use karty hain. Moving average ko widely technical analysis tool ki sorat ma use kiya jata hai. Ye technique market k long term trend ko find or analyze karny k lae use kiya jata hai. Agr moving average ko observe kiya jae to ye lagging indicator hai. Ye market ka bhot quicker or responseable indicator hai. DEMA investor or trader ko long term trend ko find karny ma help karty hain. Bhot sary tradet DEMA ko use karty hain market reversal ko find karny ma b help karta hai. So eski help sy he trader ko buying or selling oppertunities mel jati hai. Trader ko but kisi b strategy ko blindly follow ni karna chahe balky esk sath apna experience b use karna chahe. Kiu k market ki state bhot complex hoti hai or ye kisi b indicator ko ya strategy ko 100 percent follow ni karti balky ye hae move ma new spots ko pick karti hai or trader wo he es ma kamyab ho sakta hai jis k pass experience acha ho. Jis trader k pass acha experience ni ho ga wo market ma bhot suffer kary ga. Kiu k experience usko market sy deal karny ma bhot help karta hai. Trader ko loss ho ya profit wo apni experience sy better account management kar sakta hai.

Re: 4H trading strategy using Exponential Moving Averages and Candlesticks.

yes dear, aisay traders jo trend following strategy ko use kartay hain un kay liay moving average ko use karna aik best option hota hay, ye mukhtalif trend strategies kay liay aik usefull indicator samjha jata hay,

4 hour charts and Exponential Moving average indicator strategy:





is strategy main traders 200 aur 50 periods exponential moving average ko use kar kay 4 hour chart par apply kartay hain, ye strategy moving average crossover par rely nhi jarti balkay trenc kay establish honay kay baad entry ka option daiti hay aur quick profit hasil kar kay exit ka, is main traders time aur indicator kay combination sa fruitfull results gain kar saktay hain,

Uses of indicator and their purpose in 4h charts:



200 EMA ko 4h chart ki closing prices par apply kia jata hay, jo hmain main bias provide karta hay kiun kay h4 chart interval daily chart ko closely follow karta hay, us time frame main trends well reflected hotay hain, trades main risks ko manage karnay kay liay traders 50 EMA ko bhi 4h interval ki closing price par apply kartay hain, jab chart ki formation ho jay to us main ye criteria confirm kartay hain,

1. Sell bias kay liay 50 EMA na recently 200 EMA ko below sa crossover kia ho,

2. buy bias kay liay 50 EMA na recently 200 EMA ko above sa crossover kia ho,

jab ye conditions confirm ho jaen to hmain further sert up kay appear honay ka wait karna chaiay,

Sell aur Buy criteria using indicators and 4h chart:






is main prices 50 EMA par ya is kay below trade hoti hay, prices apna low banati hain aur phr retrace ho kay high bnati hui 200 EMA aur 50 EMA main cobtain ho jati hain, horizontal line ko use kartay huay traders ko retracement sa pehlay low point mark kar laina chaiay, is low kay break karnay kay baad next low ka wait karna chaiay jis sa price dobara retracement start karain, yahan sell order place karna chaiay aur stoploss previous low kay above par place karna chaiay, jab prices 50 EMA par ya is kay above hoti hain, apna high bnanay kay baad retrace ho kay low bnati hain aur 50 EMA ya 200 EMA sa above rehti hain, horizontal line tool ko use kar kay low retracement sa pehlay walay high ko mark karna hota hay, jab price high ko break karti hain to new high ka wait karain, buy order ko previous high par place karain,