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Strategy Guide: Using Exponential Moving Averages to Find Short Opportunities

Revese EMA
Contents
Contents

If the bear market is tearing apart so many of your favorite altcoins. What can you do as your net value plummets back to earth?

Well, try and make money going down! You can be profitable during the downtrend if you have a shorting strategy, and luckily ProfitFarmers is here to provide one that’s super effective and easy to use.

Shorting Crypto Like a Pro

Here’s an easy short strategy straight from the ProfitFarmers trading team.

We know that some people like to read, which is why cookbooks are still selling out despite Gordon Ramsey sharing his recipes on youtube.

To those people we say: here you go! Down below is the technical recipe for this trading strategy.

Let’s get started.

After you have the charts open (make sure its in tradingview.com), you’ll need to add 3 Exponential Moving Averages:

13 EMA on the daily time frame
13 EMA on the daily time frame
21 EMA on the daily time frame
21 EMA on the daily time frame
200 EMA on the 4 hour time frame
200 EMA on the 4 hour time frame

And finally add the volume indicator to increase confluence to this trading strategy.

In the charts you are about to see, the colors of the following EMA indicators are as follows:

Blue – 200 EMA on the 4hr chart
Yellow – 21 EMA on the daily chart
White – 13 EMA on the daily chart

Now that you have those on your charts, what should you be looking for?

On to the cooking process!

  1. Make sure the 13 EMA crosses below the 21 EMA on the daily (Bearish crossover!)

13 EMA crosses below the 21 EMA

  1. Price is using the 200 EMA as Support

200 EMA as Support

  1. Preferably prices are below the EMAs

prices are below the EMAs

  1. Breakout (breakdown in this case) is supported by volume

Breakout supported bt volume

  1. EMA’s are not contracting

EMA’s are not contracting

Now that you know what you are looking for, how are you plating it up?

How to Short Crypto Using this Strategy

  1. Once you’ve confirmed the trend, You can place a short order on the 200 EMA

place a short order on the 200 EMA

  1. Wait until the EMA are no longer contracting, and then you can find an entry using any of the Moving Averages as entry points (200 EMA is the strongest support)

200 EMA is the strongest support

200 EMA is the strongest support bouns ppont

There you have it, a powerful shorting strategy to make a meal out of this bear market!

This is a strategy that’s a reimagining of the EMA strategy we put out a few months ago. If you want to use Exponential Moving Averages to look for LONG opportunities, then watch this video.

If you found that useful, boy you’d be surprised by how much stuff we have over at ProfitFarmers.

By signing up to ProfitFarmers, you’ll get access to the Trading Academy, consistently accurate market updates, swathes of educational materials on our youtube, market scanners, a dependable customer support team, and so much more…

All available for FREE!

That’s right, it’s 100% free. Sign up now and open a FREE ProfitFarmers account!

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