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.
📚 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).
📈 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.
💰 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.
If you've found this analysis helpful, please hit the 🚀 icon, leave a comment, and follow my profile for more insights!
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/
💡 Tip: This strategy shines with stocks at all-time highs or those experiencing a solid uptrend.
“Trade with passion, not with emotion.” 💡
Please note, this analysis is for educational purposes only. I am not a SEBI registered analyst.
Your analysis and presentation of the EMA 20 strategy within the context of AJANTPHARM's performance offer valuable insights for traders looking to navigate the complexities of the stock market. It's a reminder of the importance of combining technical analysis with a keen understanding of market dynamics to make informed trading decisions.
AfnanTAjuddin
⋅
@Kapil-Mittal, Thank you Mr. Kapil, I deeply appreciate your thoughtful feedback. You've perfectly encapsulated the essence of my analysis. It's indeed crucial to combine technical tools like the EMA 20 strategy with an understanding of broader market dynamics. Together, they help traders craft more informed and strategic decisions. Let's continue our journey of knowledge-sharing and make trading a more insightful experience for all! 📈💡
bhuraaiyub786
⋅
very useful information and helpful for us thanks
sandip820325
⋅
Good One, It matches Trade legends (8/20) Strategy , however, your free indicator, analysis and supply/demand zone scoring methodology at free is boon for Indian traders, you are an asset for all of retail traders like us
AfnanTAjuddin
⋅
@sandip820325 you are correct, share it in your TL group.
sandip820325
⋅
@AfnanTAjuddin, We love you, please keep supporting us(demand supply traders), many of us don't afford to buy costly indicators