The Puria Method
Last updated
Last updated
Indicators:
(85, Linear Weighted, Low) is red
(75, Linear Weighted, Low) is green
(5, Close) is blue
(15, 26, 1, Close)
Key conditions:
The timeframe should be between M30 and H1. If the price breaks both long-term moving averages but the fast EMA (5) only breaks one, do not open the trade, regardless of the MACD signal.
BUY conditions (all conditions must be met):
EMA (5) crosses MA (75) and MA (85) from the bottom up
at least one MACD bar closes above the zero line
SELL conditions (all conditions must be met):
EMA (5) crosses MA (75) and MA (85) from top to bottom
at least one MACD bar closes below the zero line
Exit criteria: exit the trade either when the MACD histogram turns or when the EMA (5) reverses the intersection of MA (75) and MA (85).
Open a chart with a timeframe between M30 and H1 for analysis and transaction support. Apply MA (85) and MA (75) as red and green Linear Weighted Moving Averages on the low, EMA (5) on the close as blue, and the MACD with settings (15, 26, 1).
Identify a BUY signal when the EMA (5) crosses both MA (75) and MA (85) from the bottom up and at least one MACD bar closes above the zero line, ensuring that the price breaks both long-term moving averages and the EMA (5) also breaks both; if the EMA (5) only breaks one, do not open the trade.
Enter a long position and set a stop-loss below the recent swing low. Monitor the trade and exit when the MACD histogram turns or the EMA (5) reverses its intersection with MA (75) and MA (85).
Repeat the process for a SELL signal by looking for the EMA (5) crossing both MA (75) and MA (85) from top to bottom and at least one MACD bar closing below the zero line, ensuring that the price breaks both long-term moving averages and the EMA (5) also breaks both. Enter a short position with a stop-loss above the recent swing high and exit based on the reversal criteria.
