The exponential moving average may indicate an uptrend or a downtrend. It is a trend indicator.
A bullish signal is generated when prices move above the EMA, so make a long. A bearish signal is generated when prices move below the EMA, make a short.
The EMA works very well in long trends, however, does not work well in lateral movements or short periods and in those cases EMA gives false signals.
A bullish signal is generated when prices move above the EMA, so make a long. A bearish signal is generated when prices move below the EMA, make a short.
The EMA works very well in long trends, however, does not work well in lateral movements or short periods and in those cases EMA gives false signals.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.