9/30 Trading Strategy: How it Works and Is It Really Effective 

9/30 trading strategy combines 9-period EMA and 30 WMA to make trade decisions. Discover how to use it with pros and cons and find out if it works.

Open Account

Table of Contents

When someone says trading strategy, the few words that arrive in your mind include scalping, position, or swing trading. However, in the real trading world, there are so many other strategies. 

Advanced and experienced professionals use these strategies. But nobody will tell you about them. In Beirman Capital’s blog, we will discuss 9 30 trading strategy that most experienced traders use. 

Also, we will have a look at the process, pros, and cons. So that you can practice trading using it and find out whether it’s effective or not. Let’s get started. 

9/30 Trading Strategy: What is it

A 9/30 trading strategy, also known as the 9 EMA 30 WMA strategy, is a method to buy or sell financial assets. The style combines the exponential moving average of 9 periods and Weighted Moving Average of 30 days to make trade decisions. 

Confused? 

You may have heard of moving averages, a powerful technical analysis tool. It calculates the average price of an asset over a period. 9 MA, 20 MA, 50 MA are popular moving averages used in the trading world.

9/30 is also a moving average strategy, where based on exponential MA of a shorter time frame and weighted average of a longer time frame are determined.  

The 9 EMA provides you insight about the short-term trends, and the 30 WMA provides insights into long-term trends. These technical analysis indicators provide valuable information to asset price movements, and traders make decisions accordingly.

How 9/30 Trading Strategy Works

The 9/30 trading strategy provides trading insights by understanding the relationship between the short-term and long-term moving averages. Here is how to use the 9 and 30 MA strategy:  

Bullish Signal: When the 9 EMA line crosses above the 30 EMA line, it suggests strong potential for Bullish trend. Traders at this stage consider opening a buy position. 

Bearish Signals:  When the 9 EMA line crosses below the 30 EMA line, it suggests strong potential for a Bearish trend. Traders at this stage consider opening a sell position. 

Sideways Signals: When both EMA moves within a range without any crossovers, it indicates indecision in the market or consolidated movement. Traders at this stage avoid opening any positions. 

9/30 Trading Strategy Forex Example

Suppose the EUR/USD price is trending at $1.17. The trader was watching the 9/30 trading strategy chart when the 9 EMA line crossed above the 30 EMA line. 

Even the RSI indicator and market fundamentals were advocating the 9 30 strategy interpretation. So the traders open a buy position, setting the take profit and stop loss of 3:1. In this case, if the interpretation becomes true, then the trader will earn a profit. 

9/30 Trading Strategy

How to Use the 9 30 Trading Strategy

Select the Asset:

 The first thing you need to do is identify the asset for trading. It can be a currency pair, stock, index, crypto, or any other financial asset. 

Watch and Adjust the Chart:

9/30 strategy can be applied to different time frame charts. So select the timeframe as per your strategy. Also, go to the indicator section and plot the 9 EMA and 30 WMA indicator on it. 

Identify the Trend:

When the 9 EMA line crosses above the 30 EMA line, it suggests strong potential for a Bullish trend. Meanwhile, when the 9 EMA line crosses below the 30 EMA line, it suggests strong potential for a bearish trend.

Use Confirmation:

Do not place trades solely based on 9/30 EMA. Use technical analysis indicators and fundamental analysis conditions for confirmation. 

Place Trades:

Once the other indicators and overall market conditions advocate the 9/30 strategy interpretation, you can consider opening a trade. Monitor, and adjust the trades according to market conditions. 

Pros of 9/30 Trading Strategy

Sole sufficient: 9/30 EMA is a sole sufficient tool, because the confirmation part is already in the strategy. So even if you don’t use any other technical analysis indicator, it will not be a problem. 

Diversity: The strategy has a wide applicability; you can use it for forex, stock, indices, and many other markets. Also, you can even the style for both short-term and long-term trades. 

Simplicity: The 9/30 forex trading strategy is quite simple. Even beginners or traders with a lack of market knowledge can use it. 

Cons of 9/30 Trading Strategy

False Signals: Sometimes the 9/30 trading strategy may generate false signals. And only a trader with proper market knowledge can identify it. 

Inefficiency: The 9 EMA and 30 WMA strategy may not work well in sideways or choppy market conditions. During a high volatility period, the strategy may lose its effectiveness. 

Wrapping Up: Is 9/30 Trading Effective?

Yes, the 9/30 Trading is effective. The entire concept is based on numbers, and numbers don’t lie in trading. Moving averages are really helpful, and here we combine long-term and short-term time frames. 

The strategy provides you comprehensive insights so that you can make the right buy and sell decisions. You just need to use proper confirmation, solid plan, and ideal risk-to-reward for the best use. 

Liked the Strategy? Want to try?

Beirman Capital is a user-friendly platform for all sorts of strategies. Open a demo account with us, practice 9/30 trading strategy, and find its effectiveness yourself. 

Moving average can take any short-term and long-term MA, while the 9/30 takes strategy, a combination of 9-period EMA and 30-period EMA. 

Select an asset, open a chart, choose the time frame, and plot the 9 EMA and 30 WMA indicators 

9/30 trading strategy is all about trend following. Traders can use it to identify potential trends and place trades in its direction. 

A pullback zone can help you in identifying the areas for making potential buy or sell moves. 

9 EMA is an exponential moving average of asset price over 9 periods.

Yes, you can use a 9/30 trading strategy in both short-term and long-term time frames. But for such a short time frame, it may not work well due to market noise. `