How To Set Stop Losses And Take Profits using EMA Strategy

Wait for price to break and close below a level. In this example, price closed below support level and turned resistance. Next, wait for price to retest level as new resistance. The retest in this example formed a candlestick that created a wick which protruded through Horizontal Resistance Level, EMA 20 Resistance Level, and Diagonal Trend Resistance Level.

For short trade opportunity, set stop loss above EMA 20 Price Level and Rejection Candlestick High Price. Set take profit at previous swing low.