Simple Trading

Strategy
Learn how to get more winning
trades with this concept &
trading strategy

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CONTENTS
TABLE OF
3 WELCOME

MARKET STRUCTURE
4
BREAK OF STRUCTURE
5
CHANGE OF CHARACTER
6
EMA CROSSOVER STRATEGY
7-9
BONUS: VWAP
10
FAVORITE INDICATORS
11
HOW TO CONNECT
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Hi, I'm
Ruben!
As a software engineer and educator, I
thrive on solving problems and
empowering others. That's why, after an
unexpected detour (promotional denial), I
embraced option trading as a way to gain
financial control.

Now, I help people build another high

income skill (option trading) that allows
them to pursue financial independence
and freedom.

I'm on a mission to educate software

engineering communities on topics like
swing trading, day trading, technical
analysis, risk management, trading
psychology, and building generational
wealth.

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Market Structure
Market structure is made up of 4 components:

Higher highs (uptrend)

Higher lows (uptrend)
Lower highs (downtrend)
Lower lows (downtrend)

During an uptrend price action creates higher lows and

higher highs. The opposite is for a downtrend market. In a
downtrend market, price action makes lower lows and lower
highs. Like a kids seesaw!

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Break of Structure
A break of structure (BOS) happens when the price breaks
above/below a market structure after a corrective move
form. It shows the market intends to continue in the same
trend direction.

Upward trend:
When price breaks above the most recent major high.
Suggesting continuation to the upside.

Downward trend:
When price breaks below the most recent major low.
Suggesting continuation to the downside.

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Change of Character
A change of character (CHoCH) occurs when the price breaks
below or above previous corrective point. It is an indication
that momentum for a trend is giving up, and could be a sign for
a reversal.

Uptrend:
If price breaks below the lowest higher low, it can be a
signal of a downtrend reversal.

Downtrend:
If price breaks above the highest lower high, it can be a
signal of a uptrend reversal.

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EMA Crossover
Once you’ve been able to determine the trend of the market,
you can use this simple trading strategy for day trading or
scalp trading.

This strategy can be used for either bullish or bearish scenarios.

The first step is to set the EMA indicator into your favorite
trading chart tool.

Make sure to enable EMA 9 and EMA 20.

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EMA Crossover Entry

The timeframe you’ll be using is the 5 minute.

You enter the trade when the EMA9 is crossing above (bullish)
or below (bearish) the EMA 20.

Avoid entering when only price is crossing. The EMA9 confirms

the intraday trend.

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EMA Crossover

Stop Loss & Exit

The stop loss for the EMA Crossover is when price action closes
below the EMA9 (first support) or EMA20 (final support).

The exit depends on your trading exit strategy:

Fixed percentage:
This involves setting a specific percentage gain as your
profit target.
Example: 20-30% profit traget.

Technical analysis:
Utilize technical indicators or see if market structure is
reversing to determine profit-taking.

Trailing take-profit:
Lock in profits as the price moves in your favor. Aiming to
capture additional gains while protecting some profits.

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Bonus: VWAP

Adding the VWAP into the mix can let you know whether you
need to sell, hold, or buy.

This technique works best when the EMA9 and EMA20 are all
above or below the VWAP – As it indicates a strong momentum
on the current trend.

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My Fave Indicator Tools

Click below to check my favorite
trading indicators tools for
technical analysis!

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Find Me on Social
@rleija_

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