Shadowing Practice: Volume 1: The 9 & 21 EMA Pullback Strategy | The EMA Files - Learn English Speaking with Video
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Welcome to volume one of the EMA files.
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We're decoding the most widely used exponential moving average strategies all over the internet.
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No hype, no screenshots, just structure and logic.
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Today, we begin with one of the most talked about systems on the internet.
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The 9 and 21 EMA strategy.
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Some traders call it the pulse of the market.
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A simple crossover that claims to catch trends before they explode.
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But does it really give you the edge
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or is it just another clean looking setup that only works when the trend is obvious?
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Does it perform the same way in volatile markets as it does in smooth ones?
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What happens when price starts ranging instead of trending?
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So before we label it powerful, before we call it reliable, before we trust it with capital, we need answers.
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Let's break it down.
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To add this, go to the indicator section.
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Search for exponential moving average and add it to your chart twice.
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Set the first EMA length to 9.
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This will be your fast-moving line that reacts quickly to price.
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Then set the second EMA length to 21.
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This will act as your short-term trend baseline.
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For clarity, color the 9 EMA blue and the 21 EMA yellow so you can easily distinguish between momentum and structure.
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Once both are applied, your chart will clearly show the interaction between short-term momentum and short-term trend.
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And that interaction is the foundation of this entire strategy.
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The setup begins with the bullish crossover, when a 9 EMA crosses above the 21 EMA.
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This is not your entry yet.
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It's your alert that momentum may be shifting upward.
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After the crossover happens, wait for price to stay above both EMAs and show strength.
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Your entry comes on the pullback.
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When price retraces toward the 21 EMA and forms a bullish rejection candle,
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such as a strong close back above the 9 or a clear bounce from the 21, that's your confirmation for the trade.
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For your stop loss, place it below the most recent swing low form during the pullback.
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This protects you in case the crossover fails and momentum reverses.
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Your take profit can be set using a fixed risk-reward ratio, such as 1 to 2 or 1 to 3,
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meaning you aim to make two or three times what you risk.
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Alternatively, you can trail your stop and stay in the trade as long as price continues respecting the 9 EMA,
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exiting only when the 9 crosses back below the 21.
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This way, you're not blindly buying the crossover.
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You're entering with confirmation, protecting your downside, and defining your upside before the trade even begins.
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Now, for short setup, it begins with the bearish crossover.
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When the 9 EMA crosses below the 21 EMA, this is not your entry yet.
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It's your alert that downside momentum may be building.
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The cross tells you that recent price action is weakening faster than the short-term trend baseline.
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But just like the bullish setup, this is only a signal to prepare, not to jump in immediately.
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After the crossover, wait for price to stay below both EMAs and show clear weakness.
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You want to see sellers maintaining control.
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Your entry comes on the pullback.
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When price retraces upward toward the 21 EMA and forms a bearish rejection candle,
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such as a strong close back below the 9 EMA or a visible rejection from the 21, that's your confirmation to enter the short trade.
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Order failed.
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If you're selling into a pullback within a developing downtrend, not chasing the breakdown, for your stop loss,
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place it above the most recent swing high form during the pullback.
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This protects you if the crossover fails and the market shifts back to bullish momentum.
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Your take profit can be set using a fixed risk-to-reward ratio like 1 to 2 or 1 to 3, ensuring your winners outweigh your losses.
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Alternatively, you could trail your stop above the 9 EMA
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and remain in the trade as long as price continues respecting it as dynamic resistance,
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exiting only when the 9 crosses back above the 21.
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The 9 and 21 EMA strategy works best on the 1 hour timeframe, which is also one of the most widely used timeframes among traders,
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because it offers a strong balance between signal quality and trading opportunities.
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On lower timeframes like 5 or 15 minutes, the EMAs tend to produce too many false crossovers due to market noise,
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especially during ranging conditions.
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On higher timeframes like the 4-hour, signals are cleaner but less frequent, making it more suitable for patient swing traders.
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The 1-hour chart, however, provides enough volatility to capture meaningful moves while filtering out much the intraday noise.
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I have back-tested this strategy extensively and took multiple trades using this exact 9
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and 21 EMA setup on the one-hour time frame, and the overall win rate came out as 73%.
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That means out of every 100 structured trades following the crossover,
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pullback entry, proper stop loss below or above the swing point, and disciplined take profit rules, 73 closed in profit.
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However, this number is not magic and it is not guaranteed.
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The win rate can improve if you trade strictly in the direction of the higher time frame trend and avoid sideways.
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Choppy markets where EMAs tend to produce multiple fake outs and fish hook signals.
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There are losing trades, there are false crossovers, and there are moments where patients would have filtered out weak setups.
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And that's exactly why rules matter.
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The edge comes from structure, confirmation, and risk management, not from blindly buying or selling every cross.
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And that concludes Volume 1 of the EMA Files.
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If you want to see the next episode of the EMA Files, subscribe and stay tuned for Volume 2, Changes Everything.
About This Lesson
In this lesson, you will practice English listening and speaking skills through a detailed explanation of the 9 & 21 EMA Pullback Strategy, a popular trading method. By engaging with the transcript, you will enhance your understanding of key trading terms and concepts while simultaneously improving your speaking abilities. This exercise focuses on the interaction between short-term momentum and trends, offering you a chance to familiarize yourself with both technical vocabulary and the rhythm of spoken English.
Key Vocabulary & Phrases
- Exponential Moving Average (EMA) - A type of moving average that gives more weight to recent prices.
- Crossover - A point at which one line crosses over another on a chart, indicating potential changes in market momentum.
- Pullback - A temporary reversal in the price direction that can provide an opportunity for trading.
- Bearish - A term used to describe a market that is declining or expected to decline.
- Bullish - A term used to describe a market that is rising or expected to rise.
- Confirmation - Conditions that indicate a trading signal is valid or reliable.
- Stop Loss - An order to sell an asset when it reaches a certain price, used to minimize losses.
- Take Profit - An order to close a position once a certain profit level is reached.
Practice Tips
To make the most out of your practice using the shadowing technique, follow these tips:
- Start by listening to the transcript at a slower pace. Focus on the pronunciation of key trading terms, as they are essential for understanding the material.
- Repeat phrases and sentences directly after hearing them, imitating the speaker's intonation and rhythm. This method can help you improve your listening and speaking fluency effectively.
- Utilize shadowing site resources that offer audio clips of similar content. Compare these with the transcript to note differences in tone and style, allowing for deeper comprehension.
- Pay attention to the transitions used in trading terminology. Words like "but," "after," and "once" can indicate shifts in thought or strategy, which are important to master for contextual understanding.
- Record your own voice as you practice. Hearing your speech can help you identify areas for improvement in clarity and pronunciation, contributing to a more effective shadow speech practice.
- Incorporate the terms you’ve learned into your daily conversations. Using new vocabulary in context will enhance retention and build your confidence in speaking.
Engaging with this lesson not only sharpens your trading vocabulary but also reinforces your overall English language skills, preparing you for real-world discussions in finance and beyond.
What is the Shadowing Technique?
Shadowing is a science-backed language learning technique originally developed for professional interpreter training and popularized by polyglot Dr. Alexander Arguelles. The method is simple but powerful: you listen to native English audio and immediately repeat it out loud — like a shadow following the speaker with just a 1–2 second delay. Unlike passive listening or grammar drills, shadowing forces your brain and mouth muscles to simultaneously process and reproduce real speech patterns. Research shows it significantly improves pronunciation accuracy, intonation, rhythm, connected speech, listening comprehension, and speaking fluency — making it one of the most effective methods for IELTS Speaking preparation and real-world English communication.