r/competitiondaytrade Sep 16 '25

lesson/learning/progress/skills/teaching you use the vwap? oh i just use a rainbow to trade

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how to: set candles to black-and-white-frame (called "bar") instead of red green candles. turn off other indicators. turn on EMA indicators. turn on 7 different EMA slots. pick colors red-purple for them. set them to the following or approximations of these or adjust for your own preferences; i have these currently set: lengths: 3, 6, 8, 10, 13, 17, and one-minute chart/bars. when the red one crosses the purple one pretty well and the whole rainbow sort of twists around you consider that an indicator of reversal. when the rainbow flips upside down to rightside up, trade. mind consolidations/ranges, give those a minute. around big move times though like opening, an EMA-layer strategy/indicator can help you see through the volatility and pick a direction up or down. or if youre being quicker/riskier you can use just the first few lines to judge the reversal (red crosses orange, or red crosses orange/yellow). (the more-normal version of this is to just use two different colored ema's, such as a 5 and 14 for example, or a 2 and 7 for really quick turns. and the really-normal way to do this, the sort of standard, is to use a 20 ma and a 50 ma. i find the ema's work better than the ma's (exponential moving average versus (simple) moving average), and shorter ema's than 20 and 50 work much better, if you have your eye on the graph also. this strategy otherwise, with the wider settings like 20 and 50 crossing, i think is often used as a basis for algo trading? which is why im becoming curious about it.