Summary of "After 10 Years, I Found the Perfect EMA Settings! It Shows Exact Signals!"

Strategy overview

A trend-following, price-action entry method using two 3-EMA ribbons (short vs. long) to identify trending markets, wait for pullbacks, and enter on a break of the prior swing. Emphasizes layered confirmation and strict risk management (1% rule, 2:1 reward:risk).

Layered confirmation: ribbon separation → pullback to 89 EMA ribbon → break of prior swing (candle close) → entry.


Instruments & indicators


Applicable markets


EMA settings and visuals


Step-by-step framework (how to use the ribbons)

  1. Add the two 3-EMA ribbons:
    • Ribbon A (white): 13 EMA (High, Close, Low)
    • Ribbon B (orange): 89 EMA (High, Close, Low)
  2. Interpret ribbon relationship:
    • Overlap between ribbons → market is ranging / non-trending
    • Ribbons separated → trending market
      • White ribbon below orange ribbon → downtrend
      • White ribbon above orange ribbon → uptrend
  3. After confirmed separation, wait for a pullback to the orange (89) ribbon.
  4. Identify the relevant prior swing point before the pullback:
    • Downtrend (short): mark the lowest low prior to the pullback
    • Uptrend (long): mark the highest high prior to the pullback
  5. Entry confirmation:
    • Short: enter when a candle closes below the marked prior swing low
    • Long: enter when a candle closes above the marked prior swing high
  6. Place stop and target:
    • Stop loss: beyond the white (13) ribbon (above for shorts, below for longs)
    • Take-profit: at 2× the risk (R:R = 2)
  7. Manage the trade and monitor trend:
    • If the white ribbon moves into the orange ribbon → signals weakening
    • If the white fully crosses through the orange → possible trend reversal

Risk management & position sizing


Behavioral / confirmation notes


Performance, limitations & cautions


Other resources & disclosures


Presenter & tools referenced

Category ?

Finance


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