To catch major swing trades on a 2-hour chart using an Exponential Moving Average (EMA) crossover strategy, you should use the EMA 9 combined with the EMA 100. The EMA 100 is far superior to the EMA 50 for filtering out "market noise" and identifying the true macro trend on a lower timeframe like 120 minutes.
- Timeframe: 2-Hour (120-minute) chart.
- Trend Filter: 100 EMA (shows the major market direction).
- Confirm Trend: The 9 EMA must be above the 100 EMA.
- Identify the Slope: The 100 EMA line must be sloping visibly upward.
- Wait for the Pullback: Price must pull back down toward the 100 EMA.
- The Buy Trigger: Enter long when price bounces off the 100 EMA and closes back above the 9 EMA.
- Initial Target: Sell when price stretches exceptionally far above the 9 EMA.
- Trailing Stop: Hold the position until a 2-hour candle closes entirely below the 9 EMA.
- Invalidation: Exit immediately if the 9 EMA crosses back below the 100 EMA.
- Stop Loss placement: Place your stop loss just below the recent swing low or right beneath the 100 EMA line.
- What specific asset class are you trading? (Crypto, Forex, or Stock Futures?)
- Do you prefer frequent, smaller wins or holding longer for massive moves?
- Would you like to pair this with a momentum oscillator like RSI or MACD to confirm bottoms?
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