Cheat Sheet: 10-day EMA

How I time my entries

Author

Jason Bond
July 15, 2023

→ Coupon Code: SAJ70

→ New $2,000 Journey starting:

Monday July 24, 2023

→ Access to Journey A & B included

10-day EMA application

Thanks for coming to today’s training.

As promised, here’s the notes.

Strong trending stocks will respect the 10-day EMA

Look at all the trades I’ve made on NVDA off the 10-day EMA since they smashed earnings at the end of May.

Results not typical. Trading is hard. Most traders lose money. Nothing guaranteed.

  • At least two moves off the 10-day EMA would indicate trend

  • Sell put spreads below on pullbacks to the 10-day EMA

  • Wait for bullish price rejection to enter the short put vertical

  • The 10-day EMA inside bar breakout

  • Current candle is within the previous candle signaling indecision

  • Since we’re in a strong trend, the market is likely to continue higher after the breakout of the inside bar

  • Sell put spreads at or below the 10-day EMA as the inside bar breakout occurs

  • Ride the trend if price remains above the 10-day EMA

  • Pay much closer attention to the sold strike and bought strike if the 10-day EMA is broken

  • If the 10-day EMA no longer acts as support the stock could make a deeper pullback or a complete reversal

Summary:

  • In a strong uptrend the 10-day EMA should act as support

  • Sell put spreads at or below the 10-day EMA on bullish price rejection or an inside bar breakout

  • Pay close attention to the sold strike and bought strike i.e. stop loss using the 10-day moving average

→ Coupon Code: SAJ70

→ New $2,000 Journey starting:

Monday July 24, 2023

→ Access to Journey A & B included