Quad EMA

Quad-EMA (Part 1) Use this strategy to break the habits of using the wrong timeframe and having Stop Losses that are too tight.
The idea is that BTC tends to trend, so this strategy is good for finding your directional bias on any timeframe.

Trending swing trading strategy. Gives perspective of trend during a timeline.

A great strategy using on Daily anchor and 4H trigger.

Gives short or long bias when

the 8, 13, 21 cross the 55. 1W 1W
Don’t buy the cross! The cross Usually after a cross you see
a form of consolidation.
gives a directional bias signal. Technically
don’t exit the
We then expect some form of trade until the
consolidation pattern to follow. 21 recrosses
the 55.
The trigger would be a local
low or local high.
Next, look to take out the
swing candle. (Take out Demonstrating potential price
action and distance the price
the wick) would need to 21/55 recross.

Here we are looking for a pullback. If using a LOCAL

Look for support off of 1 or all of the swing level you would
EMAs (Doesn’t always touch all). set at an ATR 1 or 2
from the wick low.

21 Cross 55 Set Stop at swing low

In this example on a Weekly scale, would set a 3%

risk due to the protections offered by the time
and distance for the 21 to cross the 55 (Price
would need to push much lower for the cross).
 Initial Stop

21 Cross 55 SHORT signal

Co
ns
ol
id
at
Move stop down after swing
io
n EMA test and continuation.

tion
Entry
lida
C onso

Can add to
position on swings
Next swing lower.
Give some room here.

35%
Take 25-50%
profits after
large drops and
look to re-add.
65% Can build extra
Will need to use protection into
other TA to get out using the 34 EMA
so it doesn’t pull price cross exit.
back too much.
Technical exit still 21/55
Quad-EMA can be used on BTC 1H but not great. Good on stocks. Stocks are good with Quad-EMA on 1H, 2H, D, W.

1H chop Example:
Exit on re-cross
One of the good things about using
Set swing high Stop on a using on a LTF, is that you get
Long a re-cross without a lot of damage.
Patients here,
never crosses
then payoff.
Sell signal
Short Long Cons
olida
tion
Consolidation

Consolidatio n

Buy signal
Creates some trend.
Once you get your Buy signal
payoff, take some!

Set swing low Stop

Set swing low Stop
Quad-EMA (Part 2)
Mark your directional bias at scale.
Start at scale for directional bias. Daily most common. Could be 12H, 3D
or Weekly. More active trading would be to use 4H anchor and 1H trigger.

Divide timeframe by at least 4.

Example of the 8 & 13
1D / 6H or 4H or 2H crossing the 55 but not
12H / 4H or 2H or 1H the 21.

You shouldn’t need to go below 1H.

Don’t recommend going down to 15m, but it can be done.
Mr. A likes the 2H at times.

Once you’ve dropped your timeframe, you’ve going look for your 55 EMA
to be under or over your 200 EMA. (Death Cross / Golden Cross).
Then you are looking for interaction with either 55 EMA or 200 EMA to
find what you are going to identify as a support, resistance or rejection.
~9%
Entry here would use Drop to lower timeframe.
Ideal situation is to get a rejection candle
the swing high and
~5% add ATR 1 to 2.

of some sort ...

Ideal rejection (ex: gravestone followed by
ATR 1 another rejection spinning top)
Rejection
ATR 1
Candle

Hammer / Shooting Star

Dragonfly Doji / Gravestone Doji
Bullish Spinning Top / Bearish Spinning Top 25 % Use a trailing stop above
the 55 or even could use
Another rejection and
another opportunity.
Interaction
the 21 to protect profits. Stop
BUT no
rejection Close above here ~10%
Exits are always subjective. Entry

After the rejection, your entry will be a candle that takes out the low or HTF Cross
Reenter on ugly rejection candle.
In this case would end as a

high of the rejection candle (wick included). See notes on mother candle begins neutral trade.
If you decided to take an entry here, 25 %
the stop above the 200s in this case
would be about ~9%. This is not ideal.
In this case you would use a swing
high and add 1 ATR.
Ideally you want to set your stop above the 200s. (Need to give room in At this point you’d be at 14% profit. You Rejects here but never see it
don’t want it to pull back on you. Use make a higher high and take

the beginning) Unless things are really volatile, you want to try to keep MA S&R levels to take 25% profits along the
way. Anything over 5% and you want to
out the low.

EMA Traversing / Corrective pattern.

your stop inside of 3%. The stop is always subjective and depends on the
look at protecting your profits.
55

situation. Use local swing failures and ATR to find your stop. OR use S&R.
Remember, not all trades are going to be winners.
If you’re getting chopped up you need to move you timeframe up a little.
Short bias on the Daily

Ex: If on the 1H and you get chopped up 3-4 time in a row, move to the 2H
or 4H and wait for the signal. Trade opportunities

Example of a loss
Long bias on the Daily

Entry
Usually the cross will
protect you from chop
55 recross the
200 no more long
Rejection
Stop @ ~3% opportunities.

Stopped out
High level chop

No ideal
interaction

Trade opportunity on 4H

Important to stick to the edge during time of

consolidation because those time lead to the
biggest moves. The nice thing about that is in
consolidation your stop will be close and your
position size will be larger, so when you do hit a
large more you will make significant gains on
your account.

Note: If trading stocks never trade into Earnings.

Sell your positions before.
Mother Candle Notes:
Mother Candle
Steve: In this chart I marked two different situations with "flow" on the 4HR,
meaning the 8/13/21/55 were aligned. One faked out, one broke out. Where
would you have taken a long based on the EMA System and was it obvious
that one of the trades would break out and the other not? Or would you just
have exited the trade once stoch bear-crossed again or on any other signal?

Mr.A: In the first box, you don't get a local low established after the MA
support and then as yo mentioned you got bear crossed
The real key is that the TF is too high for multiple trade set-ups. there are
going be to solid trades on a 4x smaller timeframes.

First, let's point out that as always you can do everything right and have it
go wrong. But, you are correct on the stoch The issue is that it was an inside
candle Remember, when it is an inside candle the actual candle is the first
candle which we call the mother candle! So, that big ass candle needed to
be taken out for a true local low.

Now, can you make the decision to play the inside candle? Absolutely In
which case, you are out on the bear recross.
Low TF Play Notes:
Moto: Weekly 21 bear crossed the 55 and appears we've had interaction. Same with the daily. Because of
this I'm leaning toward opening trades to the short side. Now I'm trying to use the 1 hr as a trigger. 21 bear
crossed the 55 last night on the 1 hr and PA is below 200. 55 EMA is still above the 200s. Looking for an
edge play - I'm currently waiting to see how Stoch resets from a position under the 200's and waiting for
interaction with the EMA's on 1 hr. Would that be a reasonable edge strategy? I'm thinking about shorting
next bounce and interaction as a front run to add to position with a 55 drop below 200's on the hr. For
example, I could see a retest of the 200's from below on the 1 hr - and that might be a point of interest.

Mr.A: Before I start don’t misinterpret what I am about to say I'm going to say i prefer low timeframes in
this situations which is not to suggest that anyone else should be on low timeframes give me a minute to
go deeper.

First, to answer you on H1 the first signal would have triggered a couple hours ago, on the test of the 8
EMA and subsequent established local high.
Now, on to my point after a sharp move (relative to your TF) I look towards lower timeframes until I get
some ample sideways (contraction) or I sit out.
Why? Well, the signal off of the 8 might end up being great! But, we did just leap down over 5% in an
instant not long ago.

So, an H1 has a better chance to get stopped IMO, so soon whereas the lower timeframe is looking to
piggy back the volatility and downside action.

So, the same plays on m15 have generated multiple signals since the initial drop and would have allowed
for a couple in and out scenarios.
So, the move would create a short tern downside bias and we allow the lower timeframe to be our litmus
test for our strategy.

If we are correct we can still accidentally fall into the same H1 trade that we are discussing without as
much potential SFP risk if Bulls decide to hold their ground at support.

In this H1 did fine. But, you can see my point

Low TF Play Notes (cont.):
Moto: I see. HTF has a downward bias. I missed these entries because I was asleep. probably current Moto: Would this be a time where you'd be looking at the 5m and 15m stoch to see if they bear cross
strategy should be to wait for a bounce and re-evaluate? together? To try to catch a potential dump?
There's currently a lot of downward momentum on the 6 - 12 hr Stochs.
The EMA's on these time frames are still bull posture. this is where it gets confusing for me. Should I be Mr.A: Absolutely look again at the m15 chart I posted above
thinking about buying SFP long to catch a bounce? Knowing that it's currently a counter trend? these strategies go hand and hand.
Bull posture using simplified EMA strategy - bigger picture - below 200's with falling stoch. maybe LTF EMA, STOCH, Supertrend day-trading strategy all have to do with times that you are confident that
shorting next bounce is what I should be thinking Volatility and Trending are present. Meaning, look at the stoch bear crossed on that chart.

Moto: Several good entry points. and the SFP correlated with stoch crossing back - especially the last
three.

Mr.A: The gift is the sharp drop because it buries the LTF Stoch and has it digging itself out of a helluva
hole until "time" brings the 200's back in sight.
Now, sometimes you get the "bart pattern" so, if you see the bear crosses are not being respected then
step away and play later.

“If you want to know everything about the market, go to the beach. Push and pull your hands with the
waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it’s coming in,
it’ll never happen. The market is always right” Trade with the order flow
So, we want to find the rhythm and find the flow and JOIN it.

So, if you are in m15 or H1 or h2 or H4 or h12 or the daily and you keep getting ran over and you frustrated
and wondering “WHY do I keep getting stopped” etc. the likely answer is that you are fighting the wave
and it won’t work just as it won’t in the ocean. Therefore, enjoy the fact that you have realized it. Take a
step back and look again. Perhaps you just needed to be on a lower timeframe or perhaps you have to
Mr.A: I'm happy to ride these again and again until they buck me off but, I stay aware of the Horizontal adjust to make sure you are not getting taken by current. Either way it’s fixable once you see it.
S/R across the many timeframes that we are now staring at H4 and H2 both living between their 200's
so I want to see how that plays out.

Waiting is fine but, waiting doesn't mean we will get the higher timeframe play we seek sometimes they
turn right into a continued pressure campaign as you sort of alluded to in point out h6 and h12.

SO, if m15 and m30 FAIL I'll stick w/ them and see if they fall into an eventual clearer picture on the slight
higher timeframe (obviously h2 and h4 are low timeframes, but, higher than these micro timeframes we
are discussing) because assuming we see bearishness it can still come in 2 formats h2 or h4 bouncing and
failing or another leg down to lose support with an eventual h2 or h4 bounce failure thereafter
Trading EMA After Large Move (Member’s Market Update 20 May 2020)

21 reclaim on 4H

Buy

21 reclaim
Hold on 21
Wouldn’t want to lose the 8 or 13 so set stop
below this swing low. Cross

Want to reclaim one of the Back into edge play

EMAs (8,13,21,55) Usually the 21. Really you would drop your territory on 1H.
In this example the 21 is under timeframe. You’re getting your
the 55 so it’s not an edge play, trade idea from the 4H. Which here
but if you want to get in then… the 4HR has held the 200, so that
would be your basis of the idea.
Slope matters!
Want to see slope in your favor
OR AT LEAST flattening.
4H 1H

On low timeframes, some cross start

to come into play, BUT still under the
200s which puts you at risk.
Stabilization

Turns into 1H EMA play.

Potential add on.
Trade happens
somewhere in here

Backtesting entry

Things start to get clearer This backtest is healthy

above the 200s on m15 and You don’t necessarily

Falling knife

start to make higher highs need to use the Quad

while holding higher MAs, which EMA strategy to trade.
coincide with the 4HR reclaim You can use S/R (if have
of 21 on the 4H and the edge If you have marked off a demand very strong ability),
Stop loss is far out in this example

play on 1H (slope curling up). zone and you feel good about it, which is very shaky given the several supply & demand zones.
hundred dollar bounce so small
then start by looking for a lower low. position of 1% is required. This level

15m also coincides with the 4H 200s.

1H