The EMA200 bounce. Every chart guy draws it. Does it actually work? 🤔
I checked touches of the 200 EMA from above on 4h charts.
The touch by itself: roughly nothing. Sometimes it bounces, sometimes it slices right through.
Add two conditions and it changes:
• the EMA itself rose 1.66%+ over the last 4 days
• the overall market is bullish
769 cases. Average after 24h: +2.27%. Take profit hit before stop in 63% of cases. On fresh data it got weaker (+1.56%) but stayed positive.
So the line isn't magic. The context is. A pullback in an uptrend ≠ a touch in a downtrend.
#trading #EMA #crypto
I checked touches of the 200 EMA from above on 4h charts.
The touch by itself: roughly nothing. Sometimes it bounces, sometimes it slices right through.
Add two conditions and it changes:
• the EMA itself rose 1.66%+ over the last 4 days
• the overall market is bullish
769 cases. Average after 24h: +2.27%. Take profit hit before stop in 63% of cases. On fresh data it got weaker (+1.56%) but stayed positive.
So the line isn't magic. The context is. A pullback in an uptrend ≠ a touch in a downtrend.
#trading #EMA #crypto