HOMEWORK: EMA200 AS TREND INDICATOR
EMA200 (Exponential moving average 200 periods)
The simplest moving average system generates trading signals when price crosses the moving average:
Go long when price crosses to above the moving average from below.
Go short when price crosses to below the moving average from above.
It works very well in trends, as you can see here with a high Risk/Reward ratios but it's plenty of false signals when price it is in sideways.
The simplest moving average system generates trading signals when price crosses the moving average:
Go long when price crosses to above the moving average from below.
Go short when price crosses to below the moving average from above.
It works very well in trends, as you can see here with a high Risk/Reward ratios but it's plenty of false signals when price it is in sideways.
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