What Indicators and trading rules do you set when using 200EMA and 50EMA?
Any other additional information is welcome.
There are lots of useful things you can do with EMA’s, but the most important is also the simplest - is it sloping up or is it sloping down?
A thing to avoid is using EMA cross-overs as entry signals. This has been tried by every trader on the planet and does not work.
4 Likes
EMA’s are good to be used as a filter , if price above and ema point up go long only based on your plan and vice verse
2 Likes
The 50 MA from observation can really serve as a good trend line. The 200MA should be a strong basis for short or long direction but price tends to return to the 200MA so you want to be sure that price broke through and closed above or below the 50Ma for a cofirmation that price is returning to the 200MA which acts as the dynamic support or resistance.
2 Likes