I came across on Friday blog that is now defunct. But there was some very interesting information on the success of using a 4-period, 8-period and 21-period EMA crossover for signaling buy/sell points.
So I put it to the test on Friday with EWZ. I made some very interesting discoveries using 3-minute bars.
TRADE #1 - LONG
9:33-:36 BOT @ $77.75
10:30-:33 SLD @ $78.85
PROFIT: $1.15
1000 SHRS = $1,150
500 SHRS = $575
TRADE #2 - LONG
10:51-:54 BOT @ $78.83
11:51-:53 SLD @ $79.30
PROFIT: $0.47
1000 SHRS = $470
500 SHRS = $235
TRADE #3 - SHORT
13:06-:09 SLD @ $79.37
14:12-:15 BOT @ $79.23
PROFIT: $0.15
1000 SHRS = $150
500 SHRS = $75
-OR-
1000 SHRS = $420
500 SHRS = $210
NOTE: Large volume spike at 14:00 would have triggered cover @ $78.95. This would increase profit to $0.42/shr
TRADE#4 LONG
15:30-33 BOT @ $79.08
SELL ON CLOSE SLD @ $79.40
PROFIT: $0.32
1000 SHRS = $320
500 SHRS = $160
TOTAL PROFIT POTENTIAL
1,000 SHRS = $2,360
500 SHRS = $1,180
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