EMA Strategy Learning

For this week's newsletter I'm going to be talking about one of my favorite tools for day trading which is also one of the simplest: the 9 and 21 EMA strategy. If you don’t know EMAs, they’re just Exponential Moving Averages, which basically smooth out price action to show trends. The 9 EMA tracks short-term momentum, and the 21 EMA tracks the medium-term trend.

The core idea behind the strategy is: 

1. When the 9 EMA crosses above the 21 EMA, buyers are taking control.

2. When the 9 EMA crosses below the 21 EMA, momentum turns bearish.

Here’s how I use it:

1. Spot momentum stalls: After a strong push up (green candles) or a strong drop (red candles), I look for moments when momentum slows down. That’s the setup for a reversal.

2. Watch the EMAs: Once the price starts reclaiming the 9 EMA, it’s my first sign that buyers (or sellers) are stepping in.

3. Wait for the crossover: The real trigger is when the 9 EMA crosses the 21 EMA. That’s the clean, high-probability signal to enter.

4. Target moves: Once the trade triggers, I look at low-volume areas on the chart where the price can move quickly without much resistance.

Let me give you a real example:

This week on $DELL, price had a strong selloff. Candles tightened, selling volume dried up, and momentum slowed. I was ready for a reversal.

Price first reclaimed the 9 EMA, showing buyers were stepping in. Then the 9 EMA crossed above the 21 EMA which was my trigger. From there, price shot into a low-volume gap and hit my upside targets perfectly at $140.72 → $143.75.

Fast setup, high-probability execution. That’s why I keep coming back to the 9 & 21 EMA strategy. it’s simple, reliable, and it lets me catch clean reversals without overthinking.

Learning is better together.
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