Dow Jones Industrial Average IndexEducation
How to use Weekly EMA Crossovers
Hello everyone,
I decided to start a idea series on how to use Indicators helpfully. It's important to understand how a specific indicator works to interpret signals in the right way.
Weekly EMA Crossovers
EMA Crossovers are important events for price building, showing a possible change in trend or trend continuation. In general two signals in a short period of time are seen as trend following signals. A single signal or three signals in a row are likely to be a change in trend.
If you measure the length from a signal to the last swing low, you get an idea where the trend should go to. The target should met most of the time, but further analysis should be used to identify structural support and resistance to confirm a trade.
If you are used to elliot wave theory an ema crossover is built when a decision point has been created. This could be a bottom/top but also a pullback that is strong enough to form a crossover. Use these signals to confirm 3. wave (several trend following signals in one trend arm) or a correctional wave (trend following signals, that need more time).
If you are interested in this kind of market research feel free to contact me on my TV account.
I decided to start a idea series on how to use Indicators helpfully. It's important to understand how a specific indicator works to interpret signals in the right way.
Weekly EMA Crossovers
EMA Crossovers are important events for price building, showing a possible change in trend or trend continuation. In general two signals in a short period of time are seen as trend following signals. A single signal or three signals in a row are likely to be a change in trend.
If you measure the length from a signal to the last swing low, you get an idea where the trend should go to. The target should met most of the time, but further analysis should be used to identify structural support and resistance to confirm a trade.
If you are used to elliot wave theory an ema crossover is built when a decision point has been created. This could be a bottom/top but also a pullback that is strong enough to form a crossover. Use these signals to confirm 3. wave (several trend following signals in one trend arm) or a correctional wave (trend following signals, that need more time).
If you are interested in this kind of market research feel free to contact me on my TV account.
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