EMA CrossOvers, Hooks, Bounces and CrissCrosses

Cross Positive

Shorter EMAs cross over Longer EMAs.
Indicates a possible positive move.
A possible Long Entry or Booking out existing Short zone.

Cross Negative

Shorter EMAs cross over Longer EMAs.
Indicates a possible negative move.
A possible Short Entry zone or Booking out existing Long zone.

Hook Down

Shorter EMA when below the Longer EMA, rises upto the Longer EMA, touches it and falls down.
A possible Addition to Shorts zone.

Hook Up

Shorter EMA when above the Longer EMA, falls upto the Longer EMA, touches it and rises up.
A possible Addition to Long zone.

Mixed and crisscrosses

Shorter EMAs crisscross the Longer EMAs, all lying within short range, tightly wound.
Sideways zone.
Best to avoid trading in this zone, since whipsaws will be heavy and more.

Shortest term EMAs will react fast, and Longest term EMAs will react slow, the intermediates will have reaction time between the two extremes.

More the number of indications triggered, stronger the event, and confirm the direction.

We will add more examples in the coming days, and look into it further.

5day intra charts of nifty and banknifty indices eod 20110622


One thought on “EMA CrossOvers, Hooks, Bounces and CrissCrosses

  1. Pingback: CrossOver, Hook n Bounce | Market Outlook

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