I have a decent understanding of ema but I was wondering, how do you determine what ema to use like how you all decide on 12 26, how did you figure out what ema to use to determine new trend etc.?
Thank you
Depends on why you use them:
Do you use them for identifying trend direction?
Do you use them for support\resistance?
Do you use them as an entry signal?
I personally use the 200 period EMA for identifying the trend, and 5, 15, and 60 SMAs cross overs for entry.
These figures are not set in stone.
Hi jayboii,
The 20ema isn’t too bad as a recent indicators of where price has been. If price crosses the 20 strongly, have an objective look at a trend change. Focusing on short term ema’s does ignore the overall (higher timeframe) bias though.
]
Hello to the OP; I think that a simple moving average may be better for some purposes… Have you decided on the exponential moving average for any particular reason?
What about weighted moving averages?
Types of Moving Averages | OANDA fxTrade Europe
It’s going to be dependent on your style of trading, and, the specific instrument you’re looking @.
Some currency pairs “react” more to the 39 Period D1 EMA, others to the 50SMA, others to the 13EMA, etc etc.
It’s about using indicators (nothing but tools) to help you understand movements in price.
The D1 20EMA is a “go-to” indicator for most tech folks.
Jake
1+ here. I also use 20EMA at the moment