Beginners often confuse MA (SMA) and EMA when setting the period to 200. But the difference is massive, especially on shorter timeframes.
🔍 Quick Guide:
· SMA 200 — the 'turtle'. All 200 candles carry the same weight. The line is very smooth but lags significantly.
· EMA 200 — the 'cheetah'. Greater emphasis is placed on current prices. It's faster and closer to the chart.
That's why this strategy uses EMA on the 15-minute chart. SMA simply wouldn't react fast enough to the correction, while EMA provides ideal dynamic support.
⚙️ Long algorithm (only with the trend!)
This system is not an attempt to catch the bottom but an entry into the continuation of a strong move. We work with three filters:
1️⃣ Global filter (H1 and D1)
The price should be above the EMA (for example, EMA 50 or 200). The slope of the line is upward.
Rule: Don't swim against the current. If the day and hour are bullish, we're only looking for buys.
2️⃣ Trigger (M15)
Wait for the price to slide down and touch the 15-minute EMA.
Important: This is not a breakout, but a touch! A strong trend often 'licks' its fast average and bounces. As soon as we see contact — we switch to M5.
3️⃣ Trigger (M5 — Inverted imbalance)
After the touch, don't rush. Wait for an inverted imbalance to form on the 5-minute chart.
What is this? When a strong bullish candlestick appears after a bearish impulse, covering the drop and leaving an unfilled gap (FVG) upwards. It's a signal that sellers have run out of steam, and smart money has turned on the buys.
🎯 Here's how it looks in practice:
1. D1/H1: Confirmed uptrend.
2. M15: The price has corrected to the EMA.
3. M5: A bullish FVG (inverted imbalance) formed during the touch.
4. Entry: Open the next candlestick.
🛑 Risk management:
Always set the stop below the local low on M5 (or right at the EMA if the price has already established below it).
💡 Tip for newbies:
Don't confuse MA and EMA. For this tactic, the EMA period on M15 is usually not 200 (it's too sluggish there), but something in the range of 50–89. Use EMA where a quick reaction is needed.
❓ What moving averages do you use for bounces on M15? SMA or EMA? Share your experience in the comments! 👇