EURUSD on the 50EMA

Looks like EURUSD has found some support on the 50EMA and 21EMA lines.
Reckon it’s gonna go up again? Bit worried about the descending line on the top, so this will probably just be a target of 50pips.

Tasty. Closed half the trade for 50 pips, then went on to make 100 pips with the remaining half. I wish I’d hung onto that half though but had to set a target profit as I was going out. Note, the 21 (middle orange line) and 50EMA lines (khaki line just below middle orange line) here were also a line of support looking back through the 4hr charts.
Grey line outside the envelope at the bottom is the 200EMA.

I apologize as this is kind of off topic for your thread, but I hear people talk about the 21EMA pretty often. What’s so special about the 21EMA?? 21 just seems like an odd number to pull out of nowhere, what is it’s significance??

I hope I don’t come off as sounding like I’m doubting your analysis or anything like that. I’m sure it works, I’m just curious as to why it works… :slight_smile:

I don’t know it well enough to say why but I think as with most EMAs, they work because other traders look at them, and it is reflecting the market psychology.
Some reasons include, it’s a fibonacci number, it is the number of working days in a month, 21 most active forex hours out of 24, etc. In this method, I use it with candle analysis and it helps me confirm the trend.
I think it’s very similar to how [B]cdawg [/B]uses the 50EMA on his GBPJPY trades.

Ah! I bet the fact that it’s the number of business days in a month is the key!

Now I can see why such an odd number makes a good EMA line.