In Forex, I am usually using 50day EMA & 200EMA, using exponential instead simple because it apply more weight on the trend, it reduce the lag that common with Simple MA.
Identify the trend itself didn't help much on decide to LONG or SHORT, by applying EMA, we can actually understand if it is a right time to put LONG or SHORT.
EMA usually is applied to implicate a long & short position.
When price is above 50 EMA & 200 EMA, we'll put a long position.
When price is below 50 EMA & 200 EMA, we'll put a short position.
Setup 50EMA & 200EMA:
 |
| Draw 200EMA & 50EMA |
Long Setup : above 50EMA & 200EMA
Short Setup: Below 200EMA & 50EMA
No comments:
Post a Comment