Now we come down to how we take trade? We take multi time frame analysis. Similarly, if the market is in uptrend, then the price comes down by breaking 50 ema then it is believed that there is a change to downtrend. Up by breaking the 50 ema then we believe that the uptrend of price begins. If the market is in a downward trend then the price comes So, when 50 ema breaks, it is believed that a trend is changed.
Now you might be thinking why you should use 50 ema. Here you can see the same below in the given charts: And when the price is on 50 ema then it means sideways market. You might not be aware of the fact that if the price is below 50 ema then it is a down trend and when the price is above 50 ema it is an uptrend. Moving average tells you whether it is a bull, bear or sideways market.
If you are taking trade only by seeing 50 EMA on support resistance then you are making the biggest mistake in life. We should take trade based on price action, demand supply, support resistance, then use indicators for results. Most of the time people take trade based on indicators but they should not. Today in this post we are going to learn about EMA Trading Strategy through which both Intraday traders and swing traders can earn money. The two most popular types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). Moving average is used to analyze the trend which indicates the support and resistance level. A moving average is a stock indicator that is commonly used in technical analysis.
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