EURUSD 15M 9 EMA 30 WMA TRADING STRATEGY LONG TRADE

These are the rules for a long trade signal using the 9 ema 30 wma trading strategy:

9-period EMA must be above the 30-periods WMA .
The two moving averages need to be apart from each other.
The first bar that closes below the 9-EMA will be used as the trigger bar for the buy setup.
Place a buy limit order above the high of the trigger bar.
Note* the bar that closes below the 9-EMA needs to remain above the 30-WMA for this setup to be valid.
(Opposite for short trade)

What is the 9/30 Trading Setup
Originally, the 9/30 trading setup was developed by Mike Burns and involves using a combination of two moving averages:
9-period Exponential Moving Average ( EMA )
30-periods Weighted Moving Average ( WMA )
In this case, the 9-EMA is our short-term moving average, while the 30-EMA is out long-term moving average. The 9 and 30 EMA trading strategy seeks to take advantage of the blank space created between the two moving averages.
The filter for the 9/30 trading setup can be summarized into a three-step process.
Like with many trading strategies we present, you can always use different “flavors” to get into a trade. So, you can also use chart patterns to fine-tune your entry.

How to Trade with the 9/30 EMA Strategy
In this section, we’re going to teach you how to effectively trade with the 9/30 EMA strategy.
No matter how simple this trading strategy is, you need to have a set of trading rules before you use it.
So, let’s talk about the stop loss and take profit strategy.For the stop-loss strategy, you can use the trigger bar high/low for reference.
For example, if you have a buy trade signal, you hide your protective stop loss below the low of the trigger bar. Alternatively, for a more conservative approach, you can hide your protective stop loss below the 30-periods WMA .

Here is a little bit of trading wisdom from hedge fund billionaire Bruce Kovner:
“Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose.”
Please note that the lower the time frame used the more price whipsaws you’re going to experience.
As a trading trick to avoid being caught in a whipsaw trade, make sure you add an extra buffer to your stop loss. This buffer will allow your stop loss to survive during false breakouts.
Moving on…

It’s easy to exit these types of trades via a trailing stop loss below the 30 WMA .
This exit moving average strategy has two benefits:
You don’t have to guess a possible take profit level.
You got to keep riding the trend until a reversal happens.

When to use the 9/30 Trading Method
The 9/30 trading method is a type of trend following strategy that seeks to enter the trade on pullbacks.
In this regard, the best time to use the 9/30 trading strategy is when we have established a trend.
The trend can be defined via the two moving averages as follows:
The bullish trend is defined when the 9 EMA is above the 30 WMA
The bearish trend is defined when the 9 EMA is below the 30 WMA
The strength of the trend can also be measured via the space created between the two moving averages and the angle of the moving averages.
The bigger the gap between the 9 EMA and 30 WMA and the steeper the angle of the 2 moving average is, the stronger the trend is. Conversely, the flatter the two moving averages are, the weaker the trend is.
In and of itself the “trigger bar” used to enter our trades doesn’t give us a trading edge.
The edge comes from trading in the direction of the prevailing trend.
After you have a moving average crossover and a strong trend emerges from it, that’s when you want to use this strategy.
Note* Avoid using the 9/30 trading setup in flat markets.
Moving forward, we’ll teach you how to implement more advanced trading concepts along with the 9 and 30 EMA trading strategy.

9 and 30 EMA Trading Strategy – Advanced Concepts
The 9 and 30 moving average strategy is a versatile trading strategy that can be used in ways you never thought possible. You can use this method for short-term trading, medium-term trading and long-term trading. It all depends on your preferred time frame.
Now, here is a powerful trading secret about the types of moving averages used in this strategy.
The combination of the exponential moving average and the weighted moving average gives us a wider spread between the two MAs. This is a key principle that makes this MA strategy work.
Now, you might wonder:
“How can we improve the 9 and 30 EMA trading strategy?”
If we add a better entry filter, we can gain an extra edge.
What do we mean by this?
Instead of using a bar that closes above/below the 9-period EMA , we can wait for the entire bar to be encompassed between the 9-EMA and 30-WMA. However, the downside to this trading approach is that you will get fewer trading setups.
Often times this type of trading setup can lead to explosive trades that never look back.

What are other ways to use the 9/30 trading setup?
As we explained earlier the edge of this pattern relays on the resumption of the trend.
So, what’s the simplest way to measure the trend direction?
A series of higher high followed by a series of higher lows defines an uptrend. In reverse, a series of lower highs followed by a series of lower lows define a downtrend.
So, we want to look for ways to capture these types of price structures. To do this we’re going to introduce the concept of multi-timeframe analysis.
Note* the advanced 9/30 trading setup works best in conjunction with the daily chart .
To better time our entries, we’re going to a combination of two-time frames as follows:
The daily chart to spot the trigger candle that closes above/below the 9 EMA
Downgrade the TF to 15-minutes (or 5 minutes) and look for uptrend and downtrend price structures
If you haven’t realized…
Here is the main reason why we use this approach:
We know that the daily range can be quite high. So, instead of using the high of the daily candle to trigger our entry we downgrade our chart and seek on lower time frames early signs of upward/downward price structures.
Secondly, this trading approach also reduces the stop loss needed for the daily candle.
Based on the 9/30 trading strategy we need to wait for the daily candle low to be tagged to trigger an entry. However, whit this new advanced concept we can enter the market early and capture more pips.
When we downgrade to the 5-minute chart, we can notice the pattern of lower highs and lower lows signalling the start of a downtrend.
Keeping in mind the chart setup found on the daily time frame, we can make a trade on the 5-minute chart when price breaks and forms a new lower low. When the price makes a new lower low after at least two lower highs it develops the price structure of a downtrend.
This makes an excellent entry method for the 9 and 30 EMA trading strategy.

Final Words – 9/30 Trading Strategy
In summary, the 9/30 trading setup is a very effective trading strategy to be used across all markets and time frames. Keep in mind that the power of the 9/30 trading strategy comes from having a prior upwards (downwards) trend. Traders should use this method as a pullback trading strategy rather than try to find reversals.
The key takeaways from the 9 and 30 EMA trading strategy can be summarized below:
You have the momentum power of the prevailing trend on your side
You only need to focus on the gap between the two moving averages
Offers you effective ways to manage your risk
Built-in trailing stop
Versatility to be used in conjunction with other trading methods
Last but not least, make sure you use effective money management strategies and position size to protect your capital. After all, your number one priority as a trader is to protect your account balance at all cost.
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