Discover a real-time swing trading case study on Chalet Hotels using the 20 EMA breakout strategy with RSI filters. Learn how timeframe selection impacts trade outcomes and how to follow a structured swing trading approach.
Table of Contents:
- Introduction
- What is the 20 EMA + RSI Strategy
- Why Chalet Hotel was Picked
- Weekly Timeframe Analysis: The Bigger Picture
- Daily Timeframe Analysis: Short- Term play
- Lessons Learned from this Trade
- Final Thoughts
- FAQs
Introduction
Swing trading can be both rewarding and risky. It becomes more structured and profitable when you rely on a tested strategy and maintain discipline. In this article, we’re presenting before you a real-life swing trade taken in Chalet Hotels using our own 20 EMA breakout strategy with RSI filters. This is not just a trade recap—it’s a learning guide for retail traders to understand how to approach swing trades based on technical analysis, timeframes, and market behavior.
What is the 20 EMA
+ RSI Strategy
Before diving into the trade, here’s a quick
breakdown of our swing trading system:
Price should close above the 20 EMA
(Exponential Moving Average) on the chart timeframe we’re
observing.
RSI (Relative Strength Index) should
be above 60 or approaching 60, indicating bullish
strength.
We also confirm the market structure (higher highs,
higher lows), volume activity, and candlestick formations.
This strategy is simple yet powerful—especially
when used with the right time frame.
Why Chalet Hotel
was Picked
On our weekly scans in mid-July 2025, Chalet
Hotels came into our screener. The stock had closed above the 20
EMA on the weekly timeframe, and RSI was trending upward,
approaching the 60 mark—a sweet spot for bulls.
This setup met all our trade checklist
conditions:
Breakout above weekly 20 EMA
RSI approaching bullish zone
Strong volume confirmation
Bullish market sentiment in the broader indices
So, we decided to go long.
Weekly Timeframe
Analysis: The Bigger Picture
The stock gave a clear close above the 20
EMA on the weekly timeframe. RSI was near 60, showing
early bullish strength.
After our entry, Chalet Hotels rallied
and made a high of ₹1082 on August 1, 2025.
Interestingly, during the week, the stock went dip
and approached below the 20 EMA level again. But we didn’t exit—why?
Because it did not close below the 20 EMA
inspite of approaching below the line and our swing strategy is based
on closing prices, not intra-week fluctuations.
We stayed calm, followed the strategy, and
continued to ride the trend—which is what swing trading is all
about.
Daily Timeframe
Analysis: Short- Term play
Now let’s compare the same trade from the daily
chart perspective:
On 15th July, Chalet Hotels gave
a daily close above the 20 EMA, triggering a short-term
swing signal.
We entered long at ₹906 on the
next trading session.
The stock made a short-term high of ₹955 within
2-3 sessions.
However, on 25th July, the stock closed
below the 20 EMA, and we exited the trade at ₹913, booking
minimal profit.
So, what's the takeaway?
The daily timeframe gave a short-lived
rally, followed by a reversal.
The weekly timeframe provided a much larger
move and better profit potential.
This difference is a crucial lesson for
traders trying to understand the power of higher timeframes.
Lessons Learned
from this Trade
Timeframe Matters
Higher timeframes like weekly charts provide
stronger, more sustainable trends. Short-term trades on daily timeframes may be
prone to volatility and stop-loss hunting.
Stick to the System
Even when prices approached the 20 EMA line, we
still held our position because we simply followed our stop-loss technique as
weekly closing below 20 EMA, not short term fluctuations in the market.
Multi Timeframes
Analysis Works
We used both daily and weekly charts for Chalet
Hotels. While both gave valid setups, the weekly gave us better
conviction and stronger
RSI confirmation filters out weak
trades.
Only choosing trades where RSI is above or
nearing 60 avoids low-momentum or sideways trades.
Final Thoughts
This trade in Chalet Hotels was more than just a
winning swing setup—it was a lesson in discipline, technical clarity,
and strategic planning.
By combining the 20 EMA breakout rule with RSI
filters, we identified a strong technical entry. The weekly
timeframe gave us confidence to hold despite short-term pullbacks.
This real-life trade illustrates how retail traders can improve their
performance by:
Using simple but powerful strategies
Respecting timeframes
Sticking to a clear plan
Letting the market structure lead decisions
Remember: Swing trading isn’t about catching every move—it’s about catching meaningful, high momentum moves with a clear structure.
FAQs
What is the Best Timeframe for
Swing Trading?
Answer: Weekly and daily charts are both useful. However, the weekly timeframe provides more reliable signals and helps avoid short-term noise.
Why is RSI above 60 Important?
Answer: RSI above 60 indicates that bullish momentum is building. It helps filter out weak breakouts that may not sustain.
Can I use this Strategy in Intraday Trading?
Answer: This strategy is not suitable for intraday. It’s designed for swing trades where the position is held for days or weeks based on chart structures.
What should I do if a Stock Dips below 20 EMA Intraday?
Answer: Stick to closing price rules. Don’t react to intraday volatility. Wait for the candle to close below the EMA on closing basis to make exit decisions.
Is this Strategy Profitable for Long-Term Investment?
Answer: Yes. When applied on higher timeframes like weekly or monthly charts, this strategy can help identify early entries into long-term uptrends. Remember there is no such strategy in the world to make you rich overnight. You have to practice consistently with discipline and perfect knowledge.
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
