Using #EMA

EMA- Exponential Moving Average, This strategy provides very simple yet efficient method of Trading. But as we know, the best to trade is to combine more than one strategy to find out more accuracy. Using confluence gives us more assurance about our trading plan. So here are simple steps of how to use this EMA method-

1. Set 4 EMA lines on the chart

Length- 8 Colour- Green

Length- 13 Colour- Blue

Length- 21 Colour- Yellow

Length- 34 Colour- Red

Strategy:-

1. Buy- If the 4 EMA lines crossing in the following sequence( Top to bottom)

Green, Blue, Yellow, Red, It’s a Buy/ Long signal.

Crossover line sequence from top to bottom for BUY signal

EMA 8

EMA 13

EMA 21

EMA 34

2. Sell- If the 4 EMA lines crossing one another in the sequence of (Top to bottom)

Red, Yellow, Blue, Green, then it is a Sell/ Short signal.

Crossover line sequence from top to bottom for SELL signal

EMA 34

EMA 21

EMA 13

EMA 8

Now if we want to use this method perfectly, we should combine this indicator with another trading strategy. For example, if you see a coin A is retesting at support and EMA line crossover showing bullish indication, then it might be Buy signal

If Coin B facing rejection from some resistance and EMA line crossover showing bearish indication, then it might be Sell signal.

We can use Volume too for more accuracy.