10 EMA Strategy Explained: How to Trade the Moving Average

In this video, Jerremy Newsome will explain the really simple and yet really profitable 10 Exponential Moving Average (10EMA) Strategy that we crafted here at Real Life Trading. Many traders have asked for a demo, and here it is! Enjoy.
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[@charlessarver8350]

Watched this yesterday and tried applying it to futures. I wasn't seeing it happening so I decided it wasn't good for trading NQ. Then I took an extra step and added a session vwap line without deviations. It worked but what I had to do was just make sure that if it was above vwap then I look for longs below I look for shorts. Worked like a charm.

[@RealLifeTrading]

It worked but what I had to do was just make sure that if it was above vwap then I look for longs below I look for shorts. Worked like a charm. BEAUTIFUL!!!!! :) :) :)

[@SantyM.]

I did exactly the same and I've been trading that for the last 2 month

[@TheKevin9Kevin]

great video. surprised you shared this. as a veteran trader, I'm so tired of seeing content creators post clickbait with ridiculous setups in their videos. All the best and I have subscribed.

[@RealLifeTrading]

Thanks Kevin!!! I just shared a new one too. Let me give it to ya

[@RealLifeTrading]

kzbin.info/www/bejne/a4utko2Ol6ara5Ysi=v6R8Zn9XNB9bfRQk Newest one :)

[@TheKevin9Kevin]

@@RealLifeTrading will check it out today, many thanks

[@RealLifeTrading]

@@TheKevin9Kevin sweeeeeeet

[@iamrajesh1980]

Thank you, simple one and easy to follow

[@iamrajesh1980]

let me know if any one want to update the code and make better

[@RealLifeTrading]

thanks for watching

[@Sajith_KC]

Thank you brother❤ your channel deserves a billion views❤

[@JerremyNewsomeEnrichesLives]

Thank you!!!!!!!!!!!

[@RealLifeTrading]

Thanks

[@Emma1996able]

You are awesome, Jerremy thank you!

[@RealLifeTrading]

My pleasure!

[@walterharris6311]

Thank you very much for this help video was awesome 😎

[@RealLifeTrading]

HECK YES!!!

[@josebaez3729]

I love it and I am already using it. Thanks

[@JerremyNewsomeEnrichesLives]

Let’s gooooooooo

[@RealLifeTrading]

:)

[@planyourtrades5733]

This is fantastic thanks very much. I have been back testing it on the 3 minute on nas100 1/2 target 1 with trailing stop for T2 it seems to work every time with stop sometimes a bit bigger above a resistance. 🤔

[@RealLifeTrading]

thanks for the comment

[@JLMarin]

fantastic!! thanks!

[@RealLifeTrading]

Welcome

[@Aaurelion]

BOOM!!! Even a baked potatoe (without sour cream) LOL love it. Going to use this strat. Great explination as well ty!

[@RealLifeTrading]

THANK YOU!!!!

[@naijavani579]

You just got a subscriber,you are indeed a good instructor very wonderful video

[@RealLifeTrading]

:)

[@AFSALTHOYALKATTIL]

VERY USEFUL !!!

[@RealLifeTrading]

Glad you think so!

[@leonardscarnato8257]

Hello. With regards to the Conditions section, 1. states if the stock gaps above or below the prior high/low of the day you can trade right away. I know you have "AT OPEN" in caps. Does that mean if it does that in the premarket still hold off unless in breaks the high/low during normal trading hours? I am doing well with this strategy enjoying a 10R month so far. Thank you for making an easy and straight forward strategy for us "bake potatoes".

[@dashreznicek8336]

Awesome! I hope to start trading summer break

[@RealLifeTrading]

Awesome Dash!!!

[@joenugent3994]

This is a very good strategy. Thank you Jeremy for sharing a few weeks ago. I incorporated the STRAT with it and it has been working well for me.

[@JLMarin]

what is STRAT

[@JerremyNewsomeEnrichesLives]

@@JLMarin it’s short for ‘strategy’ ;)

[@JerremyNewsomeEnrichesLives]

YYYEEESSSSSSSS

[@JerremyNewsomeEnrichesLives]

Love it JOEEEEE

[@RealLifeTrading]

:)

[@Drkidgell]

so good and btw... it freaking works sooo good!

[@RealLifeTrading]

:)

[@girmabulti2572]

Thanks

[@RealLifeTrading]

:)

[@THEWARISWITHIN]

Works wayyyy better on higher time frames, the 4 hr is my favorite. Good shyt, good find. Thanks, subbed.

[@RealLifeTrading]

Thanks for the sub! Definitely some tickers and some instruments work on different time frames much better. Glad you found a time frame that works well for you.

[@onlyreflex8661]

Been back testing this for a few hours with only a a few losing trades and a lot of winners 🤨 Definitely seems too good to be true LOL can't wait to take this live. I'm a supply and demand trader but in strong trends price never returns to my demand zone So I was missing a lot of trades, adding this strat to my arsenal should solve the problem.

[@Myke4445]

Same, I’m back testing too and I’m like oh snap. Scalp a couple handles on the es with runners can’t wait to try live

[@RealLifeTrading]

:

[@gordonowoicho2075]

How much RR did u target for?

[@onlyreflex8661]

2:1 I got destroyed when I went live. I do think it can work with added confluences. That 10ema signal is just an indicator of possible momentum entering the market. @@gordonowoicho2075

[@charsflames1655]

I add it as a extra rule to refine my current strategy when setting up my entry limits and stops. It probably the current market but I havnt lost a R this month. Unless I spoke to soon lol. but either way I can tell It increased accuracy by stopping me from taking bad trades because I'm to early especially on options.

[@RealLifeTrading]

Thanks for watching

[@scottnewkirk485]

Great explanation:).

[@RealLifeTrading]

Glad it was helpful!

[@elwoodpalmer720]

Amazing strategy , I did practice on eur/usd with a tick chart & 1 min for scalping.

[@RealLifeTrading]

😀

[@nehawarade7349]

Very well explained

[@RealLifeTrading]

:)

[@chiliztube]

Brilliant!

[@RealLifeTrading]

THANK YOU!!!

[@timstout781]

This is the same thing Oliver Valez teaches. He uses the 20 MA and calls it color change. Green takes out red for a long and red takes out green for a short. Been using it for years. Works very well.

[@RealLifeTrading]

Yep. It does. I'm glad you are making money with it brother! :-) Keep crushing life!

[@stanimirmarintchev5234]

Try the same with 8 SMA....will work much better.....👍

[@RealLifeTrading]

It works the same for this particular strategy. :) It’s like having a car that does 0-60 in 3.9 vs 3.7 Hard to notice that difference

[@christ7199]

Hello, my question in regards to the 10 ema strategy is if I see a set up on 4 hour 2 hour 1 hour do I keep the charts set to (start aggregation at market open)? Because there is a bit of a difference formation of candles. 30 minute down is not an issue. And I am trading strategy with success. I generally have four chart grids open and see if one offers a entry set-up. Thanks!!!

[@RealLifeTrading]

"charts set to (start aggregation at market open)? " You can but it's not crucial. Really personal preference!

[@macetrades]

Awesome

[@RealLifeTrading]

Seeet

[@trevorsvandrlik9104]

When placing your stop past recent pivots, do you require it to ALSO be on the opposite side of the 10EMA (bull play, the stop must be below the 10EMA; bear play, it must be above?)

[@planyourtrades5733]

Have a look at there shorts videos.

[@RealLifeTrading]

On initial set up yes.

[@pipezj.6795]

Great video as always! Watched it several times really trying to grasp it all! Only question is that it doesn't have to close below your entry but you can be wicked in as soon as it crosses? I seem to shoot the gun early.

[@RealLifeTrading]

You can be wicked in, for sure. HAPPENS A LOT. But that's okay. IF you want more saftey, let it close and then set up a retest.. :-)

[@pipezj.6795]

@@RealLifeTrading thank you! Y'all are the best truly

[@RealLifeTrading]

@@pipezj.6795 THANKS

[@donesecarr3570]

Been in free week & was so confused on this. Now after this video I am off the short yellow bus!

[@JerremyNewsomeEnrichesLives]

YYEESSSSSS

[@RealLifeTrading]

thanks for watching

[@remboldt]

You are THE BEST

[@remboldt]

also I will add that in the first 0.3 seconds of the first glimpse of the first chart, I knew it was TSLA - haha - it's the one I know best!!

[@RealLifeTrading]

@@remboldt YYYYESSSSSSS!!!!! THANKS BRO!!! LOVE YA MAN

[@AFSALTHOYALKATTIL]

THIS GONNA BE GAME CHANGER!!!

[@RealLifeTrading]

YES

[@hansbez186]

I think you misspoke on you model explanation in the intro of your vid. You want bear close above and bull close below the 10ema for your entry. Great strategy.

[@RealLifeTrading]

You are 100% correct

[@user-lm2ux7mr6v]

Do you use an atr stop loss on this or use the high , low of the candle, thanks!

[@RealLifeTrading]

I move my stop incrementally after a bit of time.

[@leonardscarnato8257]

Hello. Just have a quick question regarding the 4 stocks that are used in the strategy. COIN on TOS is a HTB stock. Is there another stock that you would suggest besides COIN? Thanks in advance for your reply.

[@RealLifeTrading]

You can call TOS and get on the hard to borrow program. :) Otherwise = use AA

[@leonardscarnato8257]

@@RealLifeTrading HAHA I'm glad you reminded me of that...since I am already signed up for the HTB program :-)~

[@skybox-fs6dv]

Question for clarification and refinement. Does the ENTIRE first bull or bear candle (body and/or wicks too) need to be above or below the 10 EMA or just the CLOSING PRICE needs to be above or below the 10EMA? Please clarify for accurate implementation. Thanks a million man. You are the best!

[@RealLifeTrading]

Great question. JUST THE CLOSE. Wicks, I love when they interact with the moving average, but the close is the important aspect for the trade placement

[@skybox-fs6dv]

@@RealLifeTrading Thanks!

[@manojt6519]

nobody can explain this strategy easier than you have done

[@RealLifeTrading]

Thanks Manoj!!!!!!

[@user-tk5zf1nb8m]

Thank you for this video. I think I have watched almost all the 10EMA videos I can find that you have. This will be my focus for the rest of the year and 2024. I will mostly be doing this on a daily time frame due to my current work schedule. When it comes to deciding what stocks to trade, I can setup a scanner on my TOS platform or would you suggest focusing on just a few stocks exclusively like AMD, AMZN, TSLA, ect? Thanks in advance for your response and Happy Thanksgiving!!

[@RealLifeTrading]

That’s what most of us do is focus on a few stocks. Like the ones you mentioned. That being said the strategy works on many things just make sure to test it or back trade it first to make sure you understand how it works with what you want to trade it with.

[@leonardscarnato8257]

@@RealLifeTrading Hello. Just one more question, I think. I printed out the 10EMA plan from the site and have been reviewing it. The plan is 10EMA Day Trading Strategy but in the video, Jeremy says it can work on any time frame. It looks like the main entry rule is that the stock needs to break above or below the previous days candle in order to trade it for a day trade. I plan on using the Daily chart or 4hr chart so not day trading. In the videos Jeremy is showing examples of entering trades on the daily chart that are and aren't above or below the previous days candle. Are the entry rules more flexible if you are trading the daily chart or a 4hr chart? Again, thanks in advance for your help.

[@RealLifeTrading]

@@leonardscarnato8257 If you are DAY trading = it needs to take out the prior days high or low. If you are swing trading (2 hour chart and higher) it does not need to take out the prior days high or low. :) ~ Jerremy

[@leonardscarnato8257]

@@RealLifeTrading Thank you Jeremy for your response. I look forward to working this strategy.

[@RealLifeTrading]

@@leonardscarnato8257 HECK YES

[@leonardscarnato8257]

Hello. Was just curious I know in some of your other videos you have said when you day trade you sometimes don' take a trade until the market is open for about 30 minutes. Using this strategy on the 3min chart would you suggest waiting a certain period of time before entering a trade? Thanks in advance and happy 4th of July.

[@RealLifeTrading]

You can go to our dashboard and get my PDF on this strategy for Free. :-) BUT, I will trade in the first 30 mins if its a gap open past prior low of day or high of day

[@leonardscarnato8257]

@@RealLifeTrading Thank you for your quick reply. I will look for the PDF.

[@SpartanGR77]

@@RealLifeTrading Hey Jeremy, Ive looked everywhere on the site, is it in one of the courses? Thanks

[@stevemccollom1]

Is it better if the Bull or Bear candle is small? seems like in most of your examples the candles you selected were smaller

[@RealLifeTrading]

I like small candles, but it doesn't scare me either way :)

[@maximusok1439]

Simple, but very effective strategy

[@RealLifeTrading]

:)

[@salmankhan24]

hi jerremy thanks for this awesome strategy...i have one question should we wait for candle close before taking entry?

[@RealLifeTrading]

Hi Salman! YEP! Absolutely. Wait for the candle to close. Got a 10 ema on JNJ right now! :-)

[@salmankhan24]

@@RealLifeTrading thanks for the guidance...if the candle size is too big should i still take the entry...becoz sometimes i've seen some big candles on 10 ema but after that stop loss becomes very big...so what should i do in that situation?

[@RealLifeTrading]

@@salmankhan24 The more you practice it, the more you will find set ups / some set ups are better than others. :) I like SMALL bear candles for sure :)

[@salmankhan24]

@@RealLifeTrading thanks for your support...i'll be in touch with you

[@RealLifeTrading]

@@salmankhan24 🙂

[@leonardscarnato8257]

Hello. I have been working the this strategy now for about a month and have had some pretty good success. My only question I have is the strategy sais that one you place a trade you can't cancel it for 15 minutes. What happens if you set up a bull trade that doesn't fill but within that 15 minute time frame the stock reverses and a bearish setup is now available? Do you still hold the bull trade until the 15 minutes is up or can you reverse the trade? Thanks again for everything Real Life Trading does to help us "Baked Potatoes"

[@RealLifeTrading]

What happens if you set up a bull trade that doesn't fill but within that 15 minute time frame the stock reverses and a bearish setup is now available? = Take the bear trade :-)

[@leonardscarnato8257]

@@RealLifeTrading Thank you for your quick response. Happy trading!!

[@fxbasics5530]

Can the same rule apply with other moving averages like the 50 ema or 200 ema?

[@RealLifeTrading]

Eh ~ you want a faster moving average for sure. Since this is a momentum based strategy

[@jayviz]

I love the simplicity of this approach, however you quickly gloss over exactly where you are putting your initial stops. I wish you would take some time to describe details like more thoroughly

[@RealLifeTrading]

kzbin.info/www/bejne/r3iToqKpZbVriassi=Dw30wrn8ok8Phs26 (See if this helps)

[@huanng9526]

Im only a half baked potato and I understand this.

[@RealLifeTrading]

BEAUTIFUL!!!!!!!

[@sezmane123]

not bad my friend!

[@RealLifeTrading]

THANKS

[@thousandlocks3258]

You are the truth.

[@RealLifeTrading]

Thank you!!!!!! I

[@informationtv7390]

I use personaly 10 ma, 60 ma and 200 ma. Its great work. But you must know the behaviour of moving average, i use it for a long time, only 10 ma not perfect, must add some more for perfection.

[@elwoodpalmer720]

10 ema is used for scalping mostly, but there is no such things as good or bad MA , it is just an indicator not a money maker..........

[@RealLifeTrading]

::

[@drcdw]

I think if the 10 was paired with the 20 it further establishes confirmation of trend.

[@charmeeee]

is that Exponential Moving Average Or it is alright if I use Smooth moving Average? is there a big difference between the two?

[@RealLifeTrading]

Ema = exponential

[@charmeeee]

@@RealLifeTrading thank u

[@tommy6097]

Great info, ..for beginners can you slow down the cursor. It was a little hard to keep up with.

[@JerremyNewsomeEnrichesLives]

Good thing you can pause it!! :) :)

[@RealLifeTrading]

:)

[@TMFGLT]

how far back do you typically back test?

[@RealLifeTrading]

Go back as far as you want :-)

[@vinayshastri7210]

is this strategy back tested?? i like it but also want to know its profitability before i start using it

[@RealLifeTrading]

Yes and yes

[@ivoferin8176]

What size do you recommend with this strategy?

[@RealLifeTrading]

1R = one risk unit on each trade. start.reallifetrading.com/beginner-swing-trading-course-5929 Go through this? :)

[@ivoferin8176]

@@RealLifeTrading thanks! Will do!

[@Djibouti13DBLE]

Do you have stats on what percentage of efficiency works with 1/1.2 RR?

[@JerremyNewsomeEnrichesLives]

Working on it. Essentially, depends on the asset class and time frame , but generally it hits about 54.11%

[@Djibouti13DBLE]

@@JerremyNewsomeEnrichesLives I have been using this strategy since yesterday. Terra Perpetual Futures, on a 3-minute chart. I'm always afraid of these that work "too well" after a few trades. I always wait for reality to hit me in the face :) Six out of six profitable so far.

[@JerremyNewsomeEnrichesLives]

@@Djibouti13DBLE YES!!!!!!! So you know it works then!!! :)

[@Djibouti13DBLE]

@@JerremyNewsomeEnrichesLives Yes. I haven't had a losing trade since. It's kind of like when you find your perfect match. It's very suspicious when the surprise comes. But so far it's working. There's one problem. There is slowly no excitement and uncertainty in trading . :) It's weird. It's like working next to a conveyor belt in a factory. Only it pays a LOT better.

[@RealLifeTrading]

:

[@drcdw]

This is video platinum.

[@andersdanielsen8929]

Can you use it with just as great succes on 5min chart?

[@JerremyNewsomeEnrichesLives]

Of course. We’ve been doing it all week!!! Have you joined us for the free week?!?? 2 days left!!

[@andersdanielsen8929]

@@JerremyNewsomeEnrichesLives great.. I'm using the 5min for daytrading now. No i havent got the time. But I'm part of Peters RLT-Danmark crew, so I'm active in those rooms 🙂

[@JerremyNewsomeEnrichesLives]

@@andersdanielsen8929 LOVE IT !

[@RealLifeTrading]

:)

[@technicalgrowth2767]

does it work with Gold?

[@RealLifeTrading]

Yup :-)) 👍🏻

[@simonnattrass2171]

Do you use it on Forex too?

[@RealLifeTrading]

Not personally

[@carlostoscano7733]

Wait but how do you choose the best potential stocks for this strategy??

[@RealLifeTrading]

Back testing / review and 12 years of experience. :-)

[@carlostoscano7733]

@@RealLifeTrading you guys made a video explaining back testing?? I really want to learn everything about this strategy!

[@leighaskin1653]

Does this work on Forex or Crypto?

[@RealLifeTrading]

YEEPPPP

[@Itsshowtime1991]

How can we identify false signals?

[@RealLifeTrading]

Multi time frame analysis… looking at the bigger picture - other moving averages on other time frames , making sure there is nothing ‘in the way’ That definitely can help

[@RealLifeTrading]

And lastly = practice Buttttt You can’t avoid them all. It will still happen

[@msnoobtrader3102]

Anyone tried this on XAUSUD?

[@RealLifeTrading]

Yup!! It can work! kzbin.info/www/bejne/r3iugmWMitqolc0si=j-2xi59cxXA9jfxf Check out this Fx video :)

[@johnnybanana8004]

hey, i am a baked potato, finnaly i can daytrade🤣

[@JerremyNewsomeEnrichesLives]

Hoooray!!

[@RealLifeTrading]

:

[@MeesterVegas]

A baked potato doesn't have emotions to manage via the use of discipline. Therein lies the secret to trading, not some strategy, regardless of how simple you think it may be. In truth, the simpler a strategy is, the better. But, if it makes you feel good trading 100 instruments with 100 different screens and indicators, because it makes you look "smart," then by all means have at it.