...............🫶🏻🎁💎¿EMAS?💎🎁🫶🏻....................
EMAs (Exponential Moving Averages, by their English acronym) are TradingView indicators that show the average price of an asset, giving more weight to more recent prices so you can react quickly to market changes.
The combinations of the EMA 7, 25, and 99 are used to identify the direction of the trend and find entry or exit points.
What is each EMA used for?
EMA 7 (Short term): Measures very fast price movements. It reacts immediately to any recent rise or drop.
EMA 25 (Medium term): Filters out market noise and marks the direction of the intermediate trend. It helps confirm whether the EMA 7 move is real.
EMA 99 (Long term): Acts as strong support or resistance and defines the market’s overall trend.
How are they used together?
Identify the trend: If the price is above all three EMAs and the EMA 7 is above the 25 and the 99, the trend is bullish. If the opposite happens, it’s bearish.
EMA crossovers (Signals): When EMA 7 crosses above EMA 25 from the bottom up, it’s interpreted as a buy signal. If it crosses from the top down, it’s a sell signal or a drop.
Confirmation: EMA 99 is used as a filter to trade in line with the main trend. Traders avoid selling if the price is far above the EMA 99, even if there’s a quick bearish crossover.
Which EMA acts as a Strong Support or Resistance?