200 EMA bounce
The 200-period EMA is the line many traders watch to separate an uptrend from a downtrend. In a rising market, the first test of a rising 200 EMA often holds.
Watch it play out
Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.
How the live chart applies the rules
- 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
- Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
- One setup at a time. While a setup is playing out, the same strategy doesn't start another.
- Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
- How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
- Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
- The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.
How 200 EMA bounce works
- 1Where's the level?
- A rising 200 EMA, with the 50 EMA above it (falling 200 with the 50 below it for shorts).
- 2What's the trigger?
- A candle tags the 200 EMA, and the next candle closes green above that candle's high (red below its low for shorts). One setup per test: price must move away from the line before the next one counts.
- 3Where is it wrong?
- Below the lowest low of the last 5 closed candles.
- 4Where does it end?
- 2 times the risk.
- Markets
- Futures, Stocks, Forex, Crypto
- Timeframes
- 5m to 1d
- Sessions
- Any
- Also called
- 200 EMA support, 200 moving average bounce
What it means
The 200-period EMA is the line many traders watch to separate an uptrend from a downtrend. In a rising market, the first test of a rising 200 EMA often holds.
How it is confirmed without repainting
The 200 EMA value and its slope come from closed candles. One setup per test, so repeated touches in the same area are not counted twice.
When it fails
Price closes well through the 200 EMA and stays there, or the 200 EMA has gone flat.
Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.
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