0:03 You know, after being a professional
0:05 trader now for 26 years and testing
0:08 hundreds of indicators, strategies, and
0:10 countless variations thereof, I believe
0:12 I have found what is the best trading
0:15 indicator to use for all of the new and
0:17 aspiring traders out there who are ready
0:18 to level up their game and make more
0:21 consistent trades. And that indicator is
0:23 the 9 exponential moving average. It's
0:26 also known as the 9 EMA because the 9
0:29 EMA is both simple and it's powerful. I
0:31 mean, it's simple enough that the damn
0:32 thing is already pre-programmed into
0:34 your brokerage account. All you got to
0:35 do to start using it is just click a
0:37 button and right there it is on your
0:39 screen. No filters needed, no complex
0:41 mathematical equations, and no mess.
0:44 Just click the damn button. It can give
0:46 you the clarity you need to separate
0:48 those really highquality trading
0:50 opportunities from those duds you should
0:52 have avoided in the first place. But the
0:55 best part about the 9 EMA, it can give
0:57 you those sniper entries to just put you
1:00 in the best possible position to be
1:02 successful in the first place. However,
1:05 as with all trading indicators, if you
1:06 don't know how to use them the right
1:07 way, they're just going to come back and
1:09 haunt you later. So, what I'm going to
1:10 do in today's video is show you how to
1:13 use this 9 EMA like you are a pro. The
1:15 same way I am using it day in day out to
1:17 pull monthly profits from the market.
1:19 the same way I've showed it to the
1:20 members of our live trading community
1:23 who are using the 9 EMA on a day-to-day
1:25 basis to manufacture great trading
1:27 opportunities. And as always, everything
1:29 that I say and do in this video and what
1:31 I show you, I will back it up with a
1:34 series of live trade examples using the
1:36 9 EMA in a live market. That way, there
1:39 is absolutely no questions on how to
1:41 execute this to perfection. So, let's
1:43 get started. Now, before we get involved
1:45 in all the strategies and the juicy
1:47 details, we need to make sure we're all
1:50 on the same page and we have this 9 EMA
1:51 set up correctly on our charts,
1:53 especially if you want to get the most
1:55 out of it, which I imagine that you do.
1:56 We also need to make sure that we're
1:59 using the best time frames to get the
2:01 most out of that 9 EMA as well. Now,
2:02 like I mentioned there in the
2:03 introduction, this is pretty simple to
2:05 do because the indicator is already
2:06 pre-programmed into your brokerage
2:08 account. You just need to click a
2:09 button. But what I'd like to do in this
2:12 section is I just want to tweak that for
2:14 you a little bit to get you right to
2:16 that sweet spot you need to be to make
2:18 quality trades. So here's what we'll
2:19 start with. Take whatever chart you're
2:21 trading, don't care what the asset is,
2:23 and just for example, you'll see in the
2:25 upper left corner, I'm going to be using
2:27 the NQ futures for today's example.
2:29 However, there are two things that we
2:32 must have on this chart to get the most
2:35 out of the 9 EMA. Starting with the time
2:38 frame. Now, because the 9 EMA is the
2:42 fastest yet most reliable indicator,
2:44 it's used highly amongst scalpers and
2:47 day traders. So, your very best signals
2:50 are going to come from your smaller time
2:53 frames that are sub 1 hour. Now, it'll
2:54 definitely work if you're using a time
2:56 frame higher than 1 hour. But if you
2:58 really want this thing to excel the best
3:01 that it can, it needs to be a 1 hour
3:03 time frame or less. And as you can see
3:04 in the upper corner here, I'm using my
3:07 all-time favorite, the fiveminute. The
3:09 second thing that is important to
3:11 getting this set up correctly is you
3:14 must make sure that you have 24hour
3:17 data enabled on your charts. Now, if
3:19 you're trading a 24-hour market like
3:21 foreign currencies, cryptocurrencies,
3:23 and futures, you're good to go. You're
3:26 going to have that consecutive data on
3:28 that chart. However, if you're a stock
3:29 trader, you're going to have to make
3:33 sure you have pre and postmarket data
3:35 enabled. Otherwise, the indicator is
3:36 going to be slightly off, and that is
3:39 not what we want. Now, once that has
3:40 been accomplished, which is a very
3:42 simple thing to do, we're just going to
3:44 click that button and get that thing
3:45 set. So, if you take a look at the top
3:47 of my screen, you'll find something on
3:49 your brokerage software. Maybe you're
3:52 using Trading View like I am. Just click
3:54 the drop-down menu and you'll see I
3:57 already have it set moving average X
3:59 potential. Not simple, not weighted,
4:01 just moving average exponential. And
4:02 we'll talk about what the differences
4:04 are here in just a second, but you're
4:05 going to click that button and it's
4:07 going to put a line on your chart. The
4:09 next step here is you want to look at
4:11 some area or click on your chart
4:12 depending on the brokerage you'll use
4:15 and you want to make sure that the nine
4:18 period has been selected. If it in most
4:21 cases it in fact will be, but if it's
4:23 not, what you want to do is just click
4:25 on the settings menu and make sure that
4:28 it says nine. Like for example, Think or
4:30 Swim will automatically put the 50 up
4:32 there. Now, the rest of this stuff, like
4:33 I said in the intro, does not matter.
4:35 You don't have to touch any of these
4:38 filters. Just click on the indicator and
4:40 that line is on your chart. Now, once we
4:42 have this 9 EMA set up correctly on our
4:44 charts, we can start talking about the
4:46 first of two strategies that we'll be
4:48 discussing today using this 9 EMA. And
4:50 the first one we'll talk about is the
4:52 most primitive, simplistic, and
4:54 effective trading strategy using this
4:56 indicator. And it's something I call the
5:00 buy crossell method or it's alter ego,
5:03 the sell cross buy method. Now, don't
5:04 worry if you don't understand that
5:06 lingo. We're going to kind of layman
5:08 term that thing here in just a second,
5:09 but go ahead and write that down. And
5:11 I'll show you exactly what I'm talking
5:12 about right here on the screen. So,
5:15 let's say, for example, this line I've
5:18 drawn represents the 9x exponential
5:21 moving average. Here's what we want to
5:24 do. If the price of the asset we are
5:30 trading is at or above that 9 EMA, all
5:36 right, we want to buy that asset and we
5:40 want to remain buyers or stay bought in
5:44 that asset until the price crosses
5:48 through. Then and only then do we sell.
5:53 Okay. buy, stay bought, remain bought,
5:56 continue buying until you cross, then
5:58 you sell. So, just think about that for
5:59 a second. We're going to talk more about
6:04 it. The next if the price of the asset
6:08 is trading below that 9 EMA we want to
6:12 sell remain selling or refrain from
6:16 buying until the price of that asset
6:20 reclaims that 9 EMA and crosses through.
6:24 Then and only then do we buy. So that is
6:27 sell cross buy. Now don't worry if you
6:28 didn't get it. I'll show you exactly
6:30 what it looks like in a real-time
6:31 environment because it may sound just
6:33 too simplistic to work, but bear with me
6:35 here. So, let's go back and take a look
6:37 at our ENQ chart. So, you'll see our
6:41 blue line represents that 9 EMA, and we
6:42 can do our very first quiz for today,
6:44 which should be a total layup for you
6:46 guys at this point. So, based off of the
6:48 information you collected in this video,
6:52 is the current price of the INQ futures
6:56 trading above or is it trading below
6:58 that 9 EMA? I mean, this is simple,
7:01 right? It's clearly below the 9 EMA,
7:04 which means we have what? The sell cross
7:06 buy method. That's the strategy we're
7:08 going to use. Which means because it's
7:09 below that 9 EMA, we are going to be
7:12 what? Sellers. and we're going to stay
7:14 selling, remain selling, and not even
7:17 think about buying until it crosses back
7:20 above that 9 EMA. Correct? So, let's
7:22 just go ahead here and do a trade. Let's
7:24 go ahead and sell that thing based off
7:26 of where it is. Now, obviously, this is
7:28 a demonstration because in the live
7:29 market, you can get a heck of a lot
7:31 better entry than this. And I'm going to
7:32 show you that in just a second. But,
7:34 let's go with the primitive, stupid
7:37 simple method of just sell, cross, and
7:39 buy. So, I'm going to go ahead and just
7:41 move this tape a little bit forward
7:43 here, right? Let's do a couple of bars.
7:45 And let me just ask you, is the current
7:46 price, let me get that out of the way.
7:49 Is the current price of where the NASDAQ
7:53 is now, is it still below the 9x
7:55 potential moving average? The answer is
7:57 yes. So, what do we do? Think about it.
7:58 What do we do? What do we do? We
8:00 continue to hold the trade. Correct?
8:02 Because we're not going to cover this.
8:03 By the way, for the new people, cover
8:05 means buying back. When you're short,
8:06 you're profiting. We'll get into that in
8:08 a second as well, but we're not going to
8:09 touch it, right? We're still in the
8:11 trade. Let's move a couple of bars
8:14 forward. What do we got? Are we still
8:18 below that 9 EMA? The answer is yes. So,
8:20 what do we do with this current trade?
8:22 Do we take the profits? Do we get out of
8:25 this trade? No. We are not going to get
8:28 out of this trade until what? Until it
8:31 crosses back through that 9 EMA. Very,
8:32 very simple. Let's go ahead and move it
8:34 forward here and get a couple of
8:35 different chart views because when
8:36 you're in these, right, they kind of
8:38 look different. They kind of fool you.
8:39 Let's kind of move it a little bit
8:41 forward there. What do we got here? All
8:44 right. Is this still still below the
8:46 nine? Yep. Certainly. Right. So, what do
8:48 we do? We keep it correct. Let's just
8:50 keep rolling that tape forward. Still in
8:53 it? We still in it? Yep. Okay. We move
8:57 it. Still in it. Yep. We still in it?
9:00 Yes. Are we still in it? Still in it?
9:04 No. No. So, we would cover that position
9:07 right there on the cross of that 9 EMA.
9:09 Okay. But just take a look at that
9:11 chart. Kind of visualize it. And we're
9:12 going to move to another one here real
9:15 quick. So, here's another day of the
9:17 NASDAQ chart. We're remaining on the
9:19 5-minut time frame. So, here's your
9:21 second part of the quiz. Is the current
9:25 price of the NASDAQ futures above or
9:28 below that 9 EMA? Easy, right? It's
9:32 above. So this would be the what? The
9:35 buy cross then sell method, right? So
9:37 what we're going to want to do or want
9:39 to be here to get on the right side of
9:42 the market is we're going to be buyers.
9:43 And again, this is just an example. I'll
9:45 go ahead and hit the buy button there.
9:46 We can obviously get a much better price
9:48 than this, which we'll discuss in a
9:50 second, but that's the rule. Now, based
9:52 off of what we've been discussing up to
9:54 this point in the video, we're going to
9:56 do what? We're going to buy it, remain
9:59 buying it, continue to stay bought in it
10:03 until that price crosses back through
10:07 that 9 EMA, then and only then are we
10:09 going to sell it. So, let's go ahead and
10:10 move this forward. This should be real
10:14 easy at this point. Are we still above
10:18 the 9 EMA? Yes. Right, we are. Let's
10:19 move it forward a little bit more. Are
10:23 we still above the 9 EMA? Yes. What do
10:26 we do with this position? We remain in
10:29 the position until that price crosses.
10:30 Let's go ahead and move a little bit
10:33 forward. Are we still in it? Yes. Are we
10:36 still in it? Yes. Are we still in this trade?
10:38 trade?
10:40 No. No. No. We're not. Okay. So, now
10:43 we're out of the trade because of that
10:45 crossover. Now, I'm sure for a lot of
10:47 you, you're thinking at this moment, and
10:48 trust me, I don't blame you for thinking
10:50 this way cuz I certainly would too.
10:52 You're probably thinking, "There's just
10:55 no possible way trading can be that
10:58 simple, can it?" Well, the answer is,
11:00 yeah, it kind of is. And you can go a
11:02 long way in your trading journey, make
11:05 some fantastic trades and trading
11:07 decisions just off that primitive method
11:09 of buying and selling through nine EMA
11:12 crosses. However, as with all trading
11:14 indicators and strategies, what
11:16 separates the average from the
11:19 superstars are those little tiny tweaks
11:21 they make to the process. Now, you
11:23 remember that part where I said, "This
11:25 is just an example. You can get a much
11:28 better entry." I want to show you how
11:30 you can make a small tweak and take what
11:33 I just showed you, that basic primitive
11:35 method, and turn it into something
11:38 special by getting a much better entry.
11:39 Let's go back and take a look at that
11:42 NASDAQ chart. And what we're going to
11:46 talk about is the retest method just to
11:48 make sure you're getting the best entry
11:50 and more importantly you're on the right
11:52 side of the chart. Now, anybody who's
11:55 traded for any length of time knows that
11:57 if you open up and you have one red
12:00 candle or one green candle, it doesn't
12:02 necessarily mean that's where it's going
12:03 to stay. There's a lot of times it'll
12:06 just power a tower or rip right back to
12:07 the upside. And that's what you want to
12:09 make sure you don't want to rush those
12:11 entries. You inverse relationship. It
12:13 was higher. The next one could just be a
12:15 complete blowout. So what I want you to
12:16 do or what I am going to do at this
12:17 point is I'm just going to move forward
12:19 to that very next candle. And I want to
12:21 show you something. Notice that the
12:24 secondary candle, the very second candle
12:26 in fiveminute candle in the sequence.
12:31 Try to reclaim that 9 EMA. Now later
12:32 when we get into the second strategy,
12:33 I'm going to give you a little kind of
12:36 tidbit or forward thinking here.
12:38 remember that comment. They want to kind
12:41 of come back a lot and revisit that 9
12:44 EMA. This is what makes it so powerful.
12:45 It's like the ultimate trend guide, the
12:48 ultimate balance of power. But notice
12:50 here on the second candle, it got
12:54 rejected right off of that 9 EMA. That
12:58 second rejection would give you probably
13:02 15 to 20% better accuracy
13:04 in gauging as to whether or not this is
13:06 going to continue to go lower, which in
13:09 fact it does. So in this case, I want to
13:12 show you how valuable this is. My entry
13:21 versus the entry for example that was at 23,357.
13:23 23,357.
13:27 Now, that's about 25 points or so or 30.
13:30 However, at 20 points a contract on a
13:33 full INQ, that's a big deal. And there's
13:35 a good chance for the new trader if you
13:37 chase that opening candle, that quick
13:39 bounce, right? Because it's happened to
13:42 all of us, that quick bounce took us out
13:45 of the trade. So, what adds authenticity
13:47 to it rather than just aggressively
13:49 running through that bar is to wait for
13:51 the retest. Now, let me show you how
13:53 else this can happen to you because this
13:55 is a real live situation that happens to
13:58 people when they trade markets, right?
14:00 Take a look at this next bar. Let's
14:02 focus on the next bar here, the third
14:06 one. If you missed the first cross early
14:09 in the day, failed to catch the second
14:10 one, let's say you're just missing
14:13 everything, which sometimes we do, the
14:16 third bar did it again. And the third
14:18 bar, the more times, the more bars that
14:21 accumulate above or below, the more
14:24 likelihood that trend is to continue. So
14:26 even if you're like, ah, damn, this is
14:28 just too low. I can't chase it down
14:30 there. As long as it's under the 9 EMA
14:32 and you're using that 9 EMA crossover
14:34 and it gets rejected off the 9 EMA or
14:36 bounces if it's going up, you're still
14:39 good to go in the trade. This helps us
14:41 with things like anxiety and FOMO and
14:43 chasing and just getting on the right
14:44 side. I mean, that's that's 90% of the
14:46 battle for a trader is to get on the
14:48 right side of your trades. Now, I want
14:50 to kind of fast forward it here to the
14:53 to the cross back over. And notice that
14:56 at some point during the day, the price
15:00 crosses back over. So, in this case, we
15:02 do what? We're now on the other side of
15:04 that trade, right? We're take taking the
15:06 same instrument, but instead of sell,
15:09 cross, then buy, we're now buying,
15:12 cross, sell. Correct? So you go through
15:15 this, you now are a buyer. Now the
15:17 aggressive entry would be right through
15:18 that. So let me just go ahead and throw
15:21 a buy on there as a as an example. But
15:22 again, I want to show you something here
15:25 that's important about for the newer
15:27 traders. It's the retest. Let me just
15:30 move to the next bar and open this up.
15:33 Take a look. Even though it's kind of minuting
15:43 [Music]
15:45 average, right, the exponential moving
15:48 average, excuse me. It doesn't matter if
15:50 it's all the way in or slightly below
15:52 it. But there is your signal. There was
15:54 just that little cheater candle that
15:56 came in. And in this case, rather than
15:58 getting an entry at 23123,
16:01 you're almost down towards 23110. So,
16:03 you're saving on the entries, which
16:05 gives you a little bit more room. And
16:08 once that's been confirmed, that means
16:10 the market's intentions or the buy
16:12 programs that may be programmed into the
16:14 market are going to hold this up. So,
16:15 again, we'll walk through the the
16:18 example. Are we still above the nine
16:19 moving average? Take a look at the
16:21 aggression. Once you pile through that,
16:23 look where it goes. So, again, you can
16:25 take that basic primitive strategy and
16:27 really take it to another level by just
16:29 waiting on that tiny bit of
16:31 confirmation. Like I said, it can
16:33 probably increase your hit win rate or
16:35 whatever you'd like to call it by a 15
16:37 to 20% and just give you that extra
16:39 confidence you need. Now, having said
16:40 that, I want to move on to the second
16:42 strategy that I'll be sharing with you
16:44 today, which is by far my favorite
16:47 strategy, the one I use the most, and
16:49 I'm going to call it the separator. Now,
16:51 if any of you watch my past VWAP video,
16:52 I've actually done a couple of them, and
16:54 this is a trading strategy that's a
16:57 carbon copy of that VWAP separator
16:59 trading strategy. And much like the
17:02 VWAP, the 9 EMA and the current price of
17:05 the asset at some point in most cases
17:08 will reconnect themselves in the future.
17:11 Meaning either the price of that asset
17:14 will slow down in its speed and allow
17:18 that 9 EMA to catch up or the price will
17:21 immediately pull back down into the 9
17:23 EMA. And that's what we need to know
17:25 because that's the biggest power of it.
17:27 Now, some of that might sound uh too
17:28 much lingo, but I'm going to show you
17:30 what I'm talking about right here on the
17:31 chart. So, let's go back to our intraday
17:34 NASDAQ chart and take a look at how a
17:37 separator trade develops in a real-time
17:39 market. And you're going to see why this
17:41 is my favorite way to make trades. So,
17:42 let's take a look at this point right
17:44 here, and you'll see at the very low
17:47 tail of this wick, the price of the
17:50 NASDAQ was 22,800. Now, this chart can't
17:52 do it right now, but I want you to do
17:54 your best to visualize that this candle
17:57 was once fullbodied red just like these
18:00 two previously. But at this point,
18:03 notice that the distance between that
18:07 price and where the 9 EMA is is more than
18:09 than
18:12 120 points. Now, this is not a video
18:14 where we're using any excessive
18:19 indicators like range or RSIs to to
18:20 enhance that. We're just doing the
18:22 basics. But I just want to show you
18:26 anytime you get that far away, the
18:27 knee-jerk reaction of whatever
18:29 instrument you're trading is to try to
18:32 reclaim that at some point. So what will
18:34 happen in a situation like this? Once
18:37 it's become that far, it no longer
18:40 becomes a great sell or once it's
18:41 separated above that, it no longer
18:43 becomes a great buy. You must wait for
18:45 that retest to get in. So it keeps you
18:47 out of the really bad trades. Now in
18:50 this one I would have entered early but
18:52 I would have done so and been more of a
18:55 buyer here because my thinking in this
18:58 case would be overextension because it's
19:01 moved too far away from that 9 EMA and I
19:04 would at least be playing a reconnection
19:06 of. Now I've done a John Wick video
19:08 before. This is what I call that candle.
19:09 I'll post that video up on the screen
19:12 for everybody. But I would be getting in
19:14 about 22,810
19:16 maybe 8:15
19:19 and then I would be looking bare minimum
19:22 to reconnect. Stop would be underneath
19:23 of the low. So I just want to kind of
19:25 play it forward and I want to show you
19:27 what happens along the way here. Let's
19:29 just kind of move a couple of bars
19:30 forward here and you'll see that's
19:34 exactly what it does is it reclaims that
19:38 9 EMA. Now, from here, you definitely
19:41 can make that entry again. So, take a
19:42 look. I want to I want to highlight this
19:45 to show you where the safer entry is,
19:47 just so everybody can see. Take a look
19:49 at that bar right there. That was the
19:51 official confirmation
19:54 of that cross. Remember, now that would
19:56 be what you would call the buy, right?
20:00 The the buy cross cell, but it's kind of
20:02 late in that cycle after three three
20:05 candles and a bounce. So, what you would
20:07 need is this candle right here. Notice
20:11 it just kind of crests that 9 EMA again.
20:12 You may have that question about what do
20:14 you do if it's just kind of hugging that
20:17 9 EMA? And that's okay if price slightly
20:20 dips below. As long as the candle stays
20:22 very, very close to that 9 EMA, the
20:24 current trend is intact. So, you could
20:27 reenter it right there off that 9 EMA.
20:29 But if you take the separator, notice
20:33 that you're 120 points ahead of the
20:36 game, right? And now you're just rioting
20:39 that 9 EMA up as an exit strategy. So
20:41 let's kind of play it forward, right?
20:43 Notice that it's still kissing along
20:45 there. So again, for the traders that
20:47 may have been late to the party, you can
20:49 still work your trade by changing it
20:53 back to the buy, sell, cross method, but
20:56 it pays to get in those off that
20:58 separation. That's one of my favorite.
21:00 Now, before we jump into these live
21:02 trade examples, let's just take a quick
21:03 review of what we learned up to this
21:05 point. So, while you see these live
21:07 trade examples in action and how they
21:10 were managed in our live community,
21:12 you'll be able to understand why you
21:13 would take that trade in the first place
21:16 and what to expect out of that trade, at
21:19 least the basics, right? So the first
21:21 types of trades that we often look at
21:23 for the newer trader, the primitive
21:25 version is as long as the asset is
21:28 underneath of that 9 EMA or above that 9
21:30 EMA, you should stay with the trend
21:33 because the 9 EMA, excuse me, is the
21:35 ultimate trend dictating tool. It lets
21:37 you know who's in control. So you're
21:39 going to see how it wants to connect
21:41 with that. As I said, my favorite trade
21:44 is the separator trade because I know at
21:45 some point combined with other things
21:47 that I use, I know that once we get that
21:49 separation, much like I did with the
21:51 VWAB video, when you get that
21:53 separation, the tendency is to try at
21:56 some point during the day to reclaim
21:58 that. And those that's excuse me, that's
22:00 where the large types of trades take
22:02 place. So, let's move over and take a
22:03 look at some of these live trade
22:06 examples using the 9 EMA. So, the first
22:07 trade we're going to talk about is one
22:11 taken here recently, RKLB. Now, just to
22:13 kind of test your knowledge, it's okay
22:15 if you get the answer wrong. That's
22:16 fine. We're going to talk about it.
22:18 Based off of the chart you're seeing
22:20 right now, is you just kind of woke up.
22:23 That's the chart you have. What do you
22:25 think you should do or what do you think
22:26 that I did at the moment? Did I buy
22:29 this? Did I sell this? What kind of
22:31 trade based off the information we've
22:33 discussed in this video would I be
22:36 taking here? Now, hopefully you said
22:39 sell. And hopefully you see why I would
22:41 say that because what do we have here?
22:43 We just talked about it. We have the
22:47 classic separation between the current
22:50 price of the asset and where the 9 EMA
22:53 is. Now, when you get that extension,
22:54 that's the probabilities that will
22:58 rekiss that 9 EMA. But in this case, if
23:00 you guessed short, you guessed right. We
23:02 sold this. I'll put the stuff right up
23:04 here on the top. And of course the
23:06 target now becomes because a lot of
23:07 traders struggle with targets. The
23:10 target becomes revisitation of that 9
23:13 EMA. So when we kind of play that back,
23:15 what do we end up getting immediately?
23:17 You notice that the price comes back
23:21 down into that 9 EMA. That's a pretty
23:23 good distance. That was only one share
23:24 example there. Uh I'm just going to go
23:25 ahead and close it out so it doesn't
23:29 make a mess. But that is a separator
23:31 trade. Now let's take a look at another
23:33 version of this using the 9 EMA. Another
23:36 recent trade made by by the way today in
23:40 Q using that 9 EMA. Now if you take a
23:42 look at this chart right now, we have
23:45 clear separation. Now in this case
23:49 showing you the value of the 9 EMA, I
23:51 did not jump in on the first cross. And
23:55 once it got through that, I did not want
23:56 to chase the price much like that
23:58 example. Now, I could have chased the
23:59 price, but I didn't want to because I
24:01 wanted to wait for that second candle
24:03 confirmation. Correct? Now, if I just
24:04 kind of move this forward, I want to
24:06 show you what this next candle looks
24:07 like. And why we wait for those
24:10 confirmations in this case is because we
24:13 don't know what the next candle will be,
24:16 which means this one was a separator
24:19 that moved back over the top. And once
24:22 it crossed back up over the 9 EMA, it
24:25 became a long. Now, the management of
24:29 this trade becomes that 9 EMA because
24:32 the stoploss in this case would have to
24:34 be at the low of day based off of
24:37 technicals rather than risking that
24:40 much. We can just use that 9 EMA as a
24:42 stop-loss and even a profit trailing
24:44 guide. So, I wanted to kind of walk you
24:45 through that so I don't confuse
24:47 everybody. If you kind of just move a
24:49 couple of these bars forward, notice
24:52 that even though your trades may often
24:54 be choppy and bounce you back and forth,
24:57 right? Notice that each and every time
25:01 you get a clean shot at that 9 EMA, it's
25:03 like an algo program. Just steps in
25:05 there and buys. Just steps in there and
25:07 buys. Just step there and buy. So you
25:10 don't always have to be the first in.
25:11 You can always wait for that
25:13 confirmation. So in this case, you have
25:15 it clear without a doubt. you have what
25:19 you have a buy cross sell event and
25:21 you're going to stay with that trade
25:24 until it finally crosses over. So if we
25:25 just kind of move it forward here just
25:27 real quick to save some time. You're
25:28 going to see what does it do? It just
25:33 kind of walks away from that
25:36 9 EMA. Now take a look at what happened.
25:39 This can also help you with targets.
25:41 What was this?
25:44 it became separated
25:48 from that 9 EMA. Correct? So, in a
25:50 separation case, I would go ahead and
25:53 take the profits from that trade because
25:55 in this case, it's most likely to pull
25:59 back to this 23,516 or thereabouts
26:02 before it rebounces. And I would want to
26:04 book that profit and then possibly reby.
26:06 Couple candles forward, you tell me what
26:08 you see. Take a look at that chart. It's
26:11 about as plain as it can be. It walks
26:14 right down once it's separated, moves
26:17 right into that, kisses that thing, and
26:20 then rips right again. So, as scalpers
26:22 and quick day traders, we would take
26:24 that profit on that separation. If
26:26 you're fast enough, you could have
26:29 shorted it using that 9 EMA as a
26:32 connector or just sat back, rebought the
26:35 thing off the bounce. So, I hope you
26:36 understand at least a little bit better
26:39 than when we started how the 9 EMA
26:40 works. I'm sure a lot of you out there
26:42 are experimenting with this and maybe
26:44 you've never looked at it in in this
26:46 light and that's hopefully it helped
26:48 you. Now, obviously when we're talking
26:50 about trading, I think you know as well
26:52 as everyone else and I do. There's so
26:54 many variables and other things that you
26:56 can add, but if you're a new trader, I
26:57 want you to just kind of keep this in
26:58 your mind as you move forward. If you
27:00 never come back to this channel or watch
27:03 anything again, everything is is a
27:06 process. You must start small and
27:09 internalize each individual step. So
27:11 starting with just reading the the 9
27:13 EMA, excuse me, just reading that 9 EMA,
27:15 the important thing for you to do is
27:17 understand how it moves above and how it
27:20 moves below. How assets tend to hug
27:22 along that and how it develops into
27:24 trends. Trust me, after watching this
27:26 just solely for a couple days, you're
27:28 going to see the markets or whatever
27:29 you're trading in a completely different
27:30 light. And that's what's the most
27:33 important part of this process. From
27:35 there, take a look at those separation
27:37 moments. See how each market reacts as
27:39 it starts to extend. You run into those
27:41 short-term overbought, oversold
27:43 conditions, which opens up opportunities
27:45 for the scalper or day trader. So,
27:46 anyway, I think I've said enough. Kind
27:48 of got a little bit winded there, but
27:50 you know what? I love this stuff. I love
27:52 trading. I hope I'm helping you learn
27:54 how to trade. This is my life. I want to
27:56 make it yours, too. As always, I want to
27:58 remind you before I sign off officially
28:00 that each and every week, let's say
28:01 you're just you're struggling. you're
28:02 looking for fantastic ideas, a baseline
28:04 to start to elimin eliminate the
28:06 confusion. Each and every week, my wife
28:08 and I put together a very comprehensive
28:10 detailed market report called the gains
28:12 guide. We begin by breaking down all the
28:14 major markets both technically and
28:15 fundamentally. We also take a look at
28:18 the very best stocks for that week, the
28:20 ones that have the best opportunity to
28:22 make trades. It's completely free. We
28:24 send it out every weekend that you got
28:25 plenty of time to read it and sift
28:27 through it and pick out those best
28:29 opportunities before the Monday session
28:31 starts. Again, it's completely free. All
28:32 you got to do is go down there in the
28:34 description box, click the link, put in
28:36 your email, and you'll have the next
28:37 copy. Plus, you can go back and read the
28:39 next copies and see how this thing
28:40 actually works. Again, it's called the
28:42 Gains Guide. It's completely free. As
28:43 always, guys, thanks very much for
28:45 watching this video. Take care. Trade
