EMA Box Technicals
Progression, stages, ratio and parameters.
We have come a long way from the initial basic Diagonal Entry Model instruction, and via various awareness concepts, we have arrived at a point where the system is refined to the smallest detail. It is time for us to review what we have, before I will show you how all instructions, edges and models come full circle, and offer you the final parameters and details to complete the system. Your final exam.
We have learned that the EMA9 is the main focal point for all models and edges of my Dynamic Trend Following system. We start looking for a setup when the leading EMA9 ends, and after a setup triggers an entry, the EMA9 has to lead. No exceptions.
A confirmed EMA9 trend originates from an EMA50 consolidation. After a confirmed EMA9 trend ends, the loss of the EMA9 trend initiates the start of the EMA Dance, and this concept works as a road map that informs us of what price is attempting to do.
We know how to trade the EMA Dance, as it has been discussed and framed with parameters during the progression of the second course. The EMA Boxes are an integral part of the system and become even more important once the EMA Dance completes and price still doesn’t find direction.
EMA9 and EMA50 Dynamic
Early on in my trading courses, I have explained that everything I do, is rooted in the dynamic between the EMA9 and the EMA50 as a tag team.
For this instruction, I will show you how the EMA Boxes allow us to simplify our interpretation of a chart, and how to spot the high probability trades.
So for this instruction, we will look at the the EMA Dance as a part of the EMA Box sequence, and we will explore how boxes take over once the EMA Dance is complete, but price still remains range bound.
The EMA Box Sequence
The EMA Box sequence is simple, and breaks down like this:
Stage 1: the EMA9 Reversal, with the EMA9 RT and the Diagonal Entry Model (long or short);
Stage 2: the EMA50 Box, with the EMA50 Push, the HL-RT and the EMA50 RT and again the Diagonal Entry Model (long or short);
Stage 3: the Base Box, when the EMA Dance has completed, but the break out failed, and the break down failed as well, initiating a stage of balance between buyers and sellers.