What EMA does everyone prefer?
There is no one universal EMA, that would be suitable for everyone, so such question seems to be incorrect itself.
First of all it is important to mention that MA`s could be used both as separate indicator and as an additional confirmation for another indicator or pattern.
There are some MA-based strategies like Crossover, that require only two MAs. At the same time, such strategies are not efficient enough. There is a proverb circulating amont traders that you can earn money even with Crossover if you have proper risk management - it describes the profitability of that strategy.
Moving averages could be also used together with another indicators and/or patterns. For example, the strategy could include 2xMAs + RSI. MAs also work great with chart patterns like triangles to confirm the breaching of the trendline.
The idea is that to find out what are you going to achieve using MA and then try different values. For example, the most common MAs are SMA 200 on daily and EMA 9 on 5 min. At the same time, in case of elevated volatility (or the intsrument is highly volatile itself) you will have to change the values.
3 Likes
I agree I just wondered what everyone thought. There’s some useful information from you here though so thankyou!