MATA — Moving Averages Technical Analysis Setup with 10+ chart examples

6 min readDec 20, 2022

Disclaimer: The example below is a setup I worked on during the first 6 months with the prop shop. It was called MATA (Moving Averages Technical Analysis) — the idea was to identify key intraday areas to position yourself for trade. The focus was on finding dominating MA and positioning as close to it as possible and using chart patterns to time the entry. I used the same framework used in Agile Project Management. Every week I would revise the setup with the new information I just have gotten after the past week. Cycle over cycle — you keep digging in and revising over and over until there is enough information or it’s time to move on to something else. Consider it to be nothing else but an example of the framework — you need to develop for yourself.

Check out another setup I worked on during these times: Developing Low high / HOD rejection setups. 100+ charts examples and a thought process behind the trades.

Conditions:

Stock is trending on 5 min charts and respects it more or less.
Keep all trending stock on the watchlist!
Identify the exact moment when a stock starts working for you
Long for oversold conditions only as a scalp. The ideal long 2 hold is a breakout. Not a reversal.

Before entry:

For the initial entry, look for additional confluence like 200 EMA VWAP, S&R levels Today and Yesterday, and POC
It also depends on the play (Bounce). Look for rejection on 5 min and how the stock acts. Is it gonna bounce anyway, or is this rejection supports the actual trend?
Identify where the stock is in regard to the trading range. Stocks have a very low probability of a bounce right into the close. (last 15 minutes) But the high probability of a late-day reverse (not sure why I believed it was true at the time, and I still don’t know the exact probabilities of the events I mentioned below, it is really interesting to see what are they in relation to each other. Which one is more likely to happen: reversal in the last 15 minutes or starting at 2 pm?)
Make sure for midcaps — that the stock is not a market play.

Entry:

Either break of the cup or pop. You can not short the bottom of the range.
Perfect entry is at 5 min EMA pullback. Everything else should be considered as less probable > less size. Do not be biased here.
When 5 min is really steep, and the price touches it the first time> give it some time to get flat + wait for a 1-minute cap, or this might be just a pullback and not a reversal.
Breakout entry only if price a) caught up with 5 min b) was over under 1 min and finally caught up with it and breaking out now. Otherwise, buy weakness and short strength — make sure to keep our stops right.
From 1 min entry, a target can be 5 min, which is might be a new entry for the actual trend. If you take an entry on 1 minute > 5 minute EMA is the target or earlier.

****** REVIEW THIS

5 min behind us + we have a breakout candle in the opposite direction + we have higher highs. rejection 5-minute candle in the other direction is the first red flag. If a new 5 min candle opens above it — look to get out.
After you get in, start looking for the opposite signal to see if a stock wants to get in the opposite direction. Plenty of times, it will give you 5 min rejection in the way of your entry + cups on 1 min into the opposite direction.
Also, be aware of failed breakouts. Above is described what they look like. They usually end up as a massive 5 min rejection candle, they can take an offer and just go down big time after it.
Look at how MATA long failed > Rejection + holds below 1 min MA — watch out for this over |under moves and then a solid consolidation only below or above 1 min. So it happens a lot in oversold conditions. Do not go long when oversold — only as a scalp.
Check where good to add. Is MATA over/under something to always wait for? Yes. in 90% if the main move is down and you are looking to add. Wait till it either touches 5 min or touch and enters on retest 1 min (sometimes it undershoots)
Check for entry when 5 min flat or still steep or points down. Flat or curling down or descending 5 MA provides way better entries. Guess it adds this required timing component.
Check for entries only after 5 min shift. That good has to hold unless there is a reason to sell
Exit signal to review when stock catches up with 1 min.

Re-Entry

If you got stopped out > there is a very high percentage that the setup is invalidated. DO NOT RESHORT RELONG or REENTER. Wait now for 1 min setup towards 5 min EMA. Valid only if double top or double bottom. After a stop out, you have to wait and reevaluate. Do not flip your position!
Do not add unless this is a pullback towards the same 5 min entry.
Invalidates on 5 min > Makes double top> Cups on 1 minute sells off into/through 5 min

Hold or Not Hold

Consider it is day 1 or second-day play, where we are ready for the second move.

Exit 3=GTFO

Here I’ve tried to outline events that add up to each other, generating the exit signal. The bigger confluence is — the more powerful signal to exit is.