9 30 Trading Strategy

What is the 9 30 Trading Indicator?

The 9 30 Trading Strategy consists of two moving average indicators. It is a combination of the exponential moving average and the weighted moving average. The strategy consists of the 9 EMA and the 30 WMA. Therefore, it is called the 9 30 Trading Strategy.

What is the 9 30 Trading Strategy?

The 9 30 Trading Strategy uses two moving averages to create a trading signal. One is a fast or short-period moving average which is the 9 EMA. The other is a slow or long-period moving average which is the 30 WMA. The slope and positions of these moving averages on the forex chart indicate whether the market is going to continue in an uptrend or a downtrend.

Buy Signal

The chart below displays what a buy signal looks like using the 9 30 Trading Strategy:

9 30 Trading Strategy Buy Signal
9 30 Trading Strategy Buy Signal

As you can see, the 9 EMA is above the 30 WMA. You will also notice that both lines are moving in an upward direction. This signifies that the bulls have entered the market, and we are likely going to witness the market move in an uptrend. It is important to note that the bigger the gap between the two moving averages and the steeper the slope, the stronger the trend and vice versa.

Sell Signal

The chart below displays what a sell signal looks like using the 9 30 Trading Strategy:

9 30 Trading Strategy Sell Signal
9 30 Trading Strategy Sell Signal

As you can see, the 30 WMA is above the 9 EMA. You will also notice that both lines are moving in a downward direction. This signifies that the bears have entered the market, and we are likely going to witness the market move in a downtrend. It is important to note that the bigger the gap between the two moving averages and the steeper the slope, the stronger the trend and vice versa.

9 30 Trading Strategy Pros & Cons

Although the 9 30 Trading Strategy is not very popular among traders, this tool is still believed to be an underdog. Here are its pros and cons to help you better decide if it the right strategy for you:

Pros

  • Tools are built-in on the MT4 platform
  • The 9 30 chart is easy to understand
  • The strategy is beginner-friendly

Cons

  • Not accurate on longer timeframes
  • Only accurate on major trading pairs
  • Best used with other strategies

Conclusion

The 9 30 Trading strategy utilizes the 9 EMA and 30 WMA to provide trend analysis. It helps us determine the right time to enter a bullish market and a bearish market. However, this strategy does not provide stop loss or take profit values. It is also only accurate on shorter timeframes and major trading pairs. I would only be using this strategy on a demo account first before incorporating it into your real trading account.