AfnanTAjuddin

EMA 20 Strategy Unveiled with AJANTPHARM

Long
NSE:AJANTPHARM   AJANTA PHARMA

AJANTPHARM, a leading pharmaceutical company, has recently seen its stocks take a dip, positioning perfectly into the EMA 20 strategy that I'm about to unveil. Before we dive into our analysis, let's ensure we understand the strategy.

πŸ“š The EMA 20 Strategy Explained
  • Identify an Uptrend: Look for a Higher High-Higher Low structure.
  • Ensure the EMA 8 lies above the EMA 20.
  • Watch for a candle that touches the EMA 20.
  • Wait for the next candle to close higher than the previous one's close (should be above ema 20).
  • Confirm the Higher High-Higher Low structure remains intact.
  • Analyse Weekly & Monthly Zones: Reject trades in the Supply Zone (SZ) but consider ones in the Demand Zone (DZ).


πŸ“ˆ AJANTPHARM's EMA 20 Story

Given AJANTPHARM's recent trading at an all-time high with no higher timeframe supply zone, it's positioned favourably. Recently, the price closed below the EMA 20, only to rebound and close higher the next day. With the 8 EMA positioned above the 20 EMA, this stock is an ideal candidate for the EMA 20 strategy. This strategy can be deployed for stocks at an all-time high or those on a healthy uptrend.

✨ Why EMA 20?
Algo traders have let slip that many among them use the daily EMA 20 for stock entry decisions. This insight has rendered the EMA 20 a potent magnet for trending stocks. However, before deploying this strategy, ensure that the stock price respects the EMA 20.

πŸ’° Strategy in Action
Place your stop loss (SL) below the pullback candle's low. Plan your buy entry above today's high, targeting a risk-to-reward ratio of at least 1:2.


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Thank you for your continued support and feedback. Always strive to improve and keep learning. Dive deeper into my analyses and strategies at in.tradingview.com/u/AfnanTAjuddin/

πŸ’‘ Tip: This strategy shines with stocks at all-time highs or those experiencing a solid uptrend.

β€œTrade with passion, not with emotion.” πŸ’‘

Please note, this analysis is for educational purposes only. I am not a SEBI registered analyst.

Trade closed: target reached:

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