How to Read the Triple EMA for Beginners
If you're still confused about reading trends, just use the Triple EMA.
Settings: EMA 9, EMA 21, EMA 50
Here's the easy way to read it:
UPTREND = EMA 9 on top, EMA 21 in the middle, EMA 50 on the bottom
DOWNTREND = EMA 9 on the bottom, EMA 21 in the middle, EMA 50 on top
SIDEWAYS = The lines are tangled together; don't trade yet
Wider gaps between the lines = Strong trend
Narrowing gaps between the lines = Tired trend, get ready for a reversal
EMA 21 and EMA 50 can also act as dynamic Support / Resistance. In an uptrend, prices often bounce off EMA 21 / 50. In a downtrend, prices often get held back by EMA 21 / 50.
Don't buy when the price is far above EMA 50. Wait for a pullback to EMA 21 / 50 first, then enter.
What EMA settings do you use? Comment below.
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