Please, does anybody know how to use 100 EMA and 200 EMA to trade. I leanrt they are a good trading tools? thank you.
There are several videos on FXDD in which their VP of currency research refers to the 100 and 200 EMAs, normally on the 5 minute and hourly charts. He uses them to show support and resistance, and generally indicates that when price is above them, the bias is positive, and when price is below them, bias is negative. He also refers to a “through the goalposts” strategy but I have never heard that explained in detail … probably something like when it goes through one by X amount, it normally goes through the other one as well, and be ready for it to whip back through them as well. Maybe someone here can explain it better as I’m not sure of it’s details and would like to know myself. Their VP inferred once that it is a strategy used by institutional investors. It’s actually kind of easy for him to use the 100 and 200 as he is talking about history … so he looks like a genius. He does the same techical explanation using Fibs, which alot of other folks use too. Kind of makes them self fulfilling prophecies, like the 00 and 50 levels.