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EMAS

Schroedinger's EMA CrossSometimes, when a long term EMA is in proximity to a short term EMA, it is known to be some of the most important confluences for long term swing traders, known as the "Golden" and "Death" Crosses. Sometimes, the market makers like to take advantage of traders looking for this confluence. This is what causes expansive volatility within these ranges. It can also be noted that the areas where the EMA thenselves crossed can be massively strong levels price will be attracted to later, as well as often important fibonacci confluence.
TVC:DXYEducation
by QuantumDivergence
XAAUSD Strategy to Trade any Pair Testing Phase 1so weekends for many mean relaxing, but for many of us it is, contemplating what went wrong, strategizing our risk management and tweaking our strategies. I Had a thought that instead of trading during news and peak session, why dont we trade after the market has done what it has done and enter when the strength has weakened, this way we might cut unnecessary loss during news and peak sessions and aim for 3-5$ profits/loss. its less stressful, you don't need to sit the entire day or half a day, the process might be long and might require patience but its worth it. This may suit swing traders who can hold position for more than a day, but my basic idea is to enter and exit before the day closes(for testing purpose only). So basically i will take 2 EMA's 20 and 200, During the end of the day i will look to get in to the market. Conditions : There needs to be a maribozu candle above or below the ema, depending on if its a buy trade or sell trade. For buy trade the candles should be above both 20 and 200 ema and for the sell trade it should be below the 20 and 200 ema. Our Entry : will be after it breaks the maribozu candle body. Risk Ratio : 1:1 for starters Note: This strategy is risky if you account size is below 5000$ Will backtest this and keep sharing updates.
FOREXCOM:XAUUSD
by Subliminalroots
Stock Market Logic Series #5We are going to discuss the concept of FAIR price and how it is related to momentum. This is also a missing piece of the puzzle related to the guppy moving averages. Which never explains the logic of fair price behind the moving averages. Just saying "traders are selling" or "investors are buying" without giving you the psychology behind the buying and selling. The psychology behind buying and selling: When you want something, you are willing to pay a premium on it, just to get it. When you don't want something, you are willing to give a discount on it, just to get rid of it. The Significance of Moving Averages in Stock Market Trading In stock market trading, moving averages play a significant role in determining the fair price of a stock. Fast moving averages represent the short-term fair price, while slow moving averages indicate the long-term fair price. These moving averages serve as important indicators for traders, helping them understand the price trends and make informed decisions. Trading Above the Fair Price: Strong Buyer Interest When trading is above the fair price, it signifies that buyers are highly interested in acquiring the stock, even if it means paying above the fair price. This increased buying pressure drives the price up, as individuals value the stock and are willing to pay a premium to secure it. This scenario presents an opportunity for traders to benefit from price appreciation. Go with momentum. Buying Opportunities: Trading Below the Moving Average Conversely, when the price of a stock falls below the moving average, it indicates a potential opportunity for investor buyers. In this situation, the previous owner of the stock may become anxious to sell and is willing to do so at a price below the fair value. This creates a favorable buying opportunity for investors, as the stock can be acquired at a discount or fair price. Trading Below the Fair Price: Anxious Sellers and Discounted Stocks Trading below the fair price implies that the old buyer is motivated to sell the stock quickly. They may be eager to get rid of their position, leading them to offer the stock at a price lower than its fair value. For trading purposes, this means momentum is down, and you should look for an opportunity to sell. If the price is dramatically traded below the fair price (away from MA) this could FLAG you that a trend reversal may just happens. Remember the psychology of buying and selling. Ask yourself, if someone wants it, how come this price is so cheap? Unfair Prices in a Downtrend: Waiting for Confirmation of a Decline Moreover, when you are in a downtrend, when the price is above the moving average, it indicates that the stock is trading at an unfair price. However, if you have insights or analysis suggesting that the price will decline in the future, it may be wise to wait for the short-term trend to shift. By observing the stock's movement and waiting for the price to fall below the yellow fair price (moving average), traders can confirm that selling is indeed happening before making their move. Getting in too early, with the wrong trading technique, will get you hurt. Assessing Market Conditions: Understanding Fair Prices and Moving Averages By understanding the dynamics of fair prices and their relationship with moving averages, traders can better assess market conditions. They can identify when prices deviate from their fair value and use this knowledge to their advantage. This insight allows traders to make informed decisions based on price trends, helping them maximize potential profits and minimize risks. Comprehensive Research: Beyond Fair Prices and Moving Averages If you could couple of other factors that support your view of FAIR price. You can consider various factors such as company fundamentals, industry trends, and market sentiment to complement your understanding of fair prices and moving averages. Enhancing Trading Strategies: Incorporating Technical Indicators In addition to fair prices and moving averages, traders should also consider other technical indicators and tools to enhance their trading strategies. These may include volume analysis, trend lines, support and resistance levels, and oscillators. By incorporating multiple indicators, you can gain deeper insights into market movements and improve your ability to identify profitable opportunities. Adapting to Market Dynamics: Continuous Learning in Stock Market Trading Understanding the concept of fair prices in relation to moving averages is just one piece of the puzzle. Successful traders continually adapt and refine their strategies based on market conditions, new information, and evolving trends. By staying informed, conducting a thorough analysis, and employing sound trading principles, you can increase your chances of success in the stock market. Hope this helps you, follow for more. Like this post to save it to your ideas for future reference, so you will not forget this principle.
SP:SPXEducation
by ZoharCho
1
LTCUSD | Will halving get us through the resistance?Good morning, One month to go until Litecoin Halving. Since the beginning of the year, we have been constantly moving between the daily EMA 200 (white) and the EMA 800 (purple). At the time of this idea, we are back below the EMA 200 and all of our EMAs have flattened out. With such news events, existing resistances and old liquidity zones can usually be worked off well. I am therefore preparing for two scenarios. Scenario 1 (blue) We come in July again significantly above the EMA200 and our short EMAS, 5+13 pull along. In this I would use 50% of the capital that I want to use for this idea. The other 50% when breaking above the EMA800. Scenario 2 (orange) We get a stop hunt of our range. Everything from $71.60 would be a top price and would lead to 50% accumulation. The other 50% would come into play should we get back into the range after such a stop hunt. Price Targets : Around $110 and between $140 and $150.
COINBASE:LTCUSDLong
by Hawkeye-Charting
3
SMA & EMA in Trading!Combining Exponential Moving Average (EMA) and Simple Moving Average (SMA) in your trading strategy can provide you with additional insights and confirmation signals. Here's how you can use both indicators together: 1| Understand the differences: EMA and SMA are both moving averages but calculate the average differently. SMA calculates the average closing price over a specified period, while EMA assigns more weight to recent prices, making it more responsive to current market conditions. 2| Confirming the trend: You can use both indicators to confirm the prevailing trend. For example, if the price is consistently trading above both the EMA and SMA, it suggests a bullish trend. If the price is below both the EMA and SMA, it indicates a bearish trend. The confirmation from both indicators can increase your confidence in identifying the trend direction. 3| Identifying crossovers: Crossovers between EMA and SMA can provide valuable trading signals. A bullish crossover occurs when the shorter-term EMA (e.g., EMA20) crosses above the longer-term SMA (e.g., SMA50 or SMA200). This may indicate a potential buying opportunity. Conversely, a bearish crossover occurs when the shorter-term EMA crosses below the longer-term SMA, suggesting a potential selling opportunity. 4| Dynamic support and resistance: EMA and SMA can act as dynamic support or resistance levels. During an uptrend, the shorter-term EMA (e.g., EMA20) may provide support, while the longer-term SMA (e.g., SMA50 or SMA200) acts as stronger support. In a downtrend, the shorter-term EMA may act as resistance, while the longer-term SMA acts as stronger resistance. Observing how the price reacts to these moving averages can help you make trading decisions. 5| Confirming reversals: Crossovers between different EMAs and SMAs can also help confirm trend reversals. For example, if the shorter-term EMA crosses below the longer-term SMA and both lines start sloping downward, it may indicate a bearish trend reversal. Conversely, a bullish trend reversal can be confirmed if the shorter-term EMA crosses above the longer-term SMA, with both lines sloping upward. 6| Fine-tuning your strategy: Experiment with different combinations of EMA and SMA periods to find the ones that work best for the specific market or security you're trading. Shorter-term EMAs (e.g., EMA20) respond faster to price changes, while longer-term EMAs (e.g., EMA50 or EMA200) provide a more smoothed-out view of the trend. Remember that no trading strategy is foolproof, and it's essential to consider other factors such as market conditions, volume, and price patterns. Always practice proper risk management by setting stop-loss orders and using appropriate position sizing techniques. Regularly review and adjust your strategy based on market dynamics and your own trading experience.
AMEX:SPY
by A1TradingHub
How to use EMA200?EMA200, also known as the 200-day Exponential Moving Average, is a widely used technical indicator in trading. It helps traders identify the overall trend and potential support or resistance levels in a particular security or market. Here's how you can use EMA200 in your trading strategy: 1| Understand the concept: The EMA is a moving average that assigns more weight to recent price data, making it more responsive to current market conditions. The EMA200 calculates the average closing price over the past 200 trading days and plots it on the chart. It is often considered a long-term trend indicator. 2| Determine the trend: By observing the price action in relation to the EMA200, you can determine the prevailing trend. If the price is consistently trading above the EMA200, it indicates an uptrend. Conversely, if the price is consistently trading below the EMA200, it suggests a downtrend. 3| Identify support and resistance: The EMA200 can act as a support or resistance level. During an uptrend, the EMA200 may provide support, meaning that if the price dips towards or touches the EMA200, it could be a potential buying opportunity. In a downtrend, the EMA200 may act as resistance, where the price could face selling pressure if it approaches or touches the EMA200. 4| Confirm trend reversals: When the price crosses above or below the EMA200, it can signal a potential trend reversal. A bullish crossover, where the price moves above the EMA200, may indicate the start of an uptrend. On the other hand, a bearish crossover, where the price drops below the EMA200, may indicate the beginning of a downtrend. 5| Combine with other indicators: While the EMA200 can provide valuable insights, it's recommended to use it in conjunction with other technical indicators or tools to strengthen your trading strategy. This may include additional moving averages, trendlines, oscillators, or volume indicators. 6| Practice risk management: As with any trading strategy, it's crucial to implement proper risk management techniques. Set stop-loss orders to limit potential losses and determine your target profit levels based on your risk-reward ratio. Remember that no single indicator guarantees trading success, and it's essential to combine technical analysis with fundamental analysis, market sentiment, and other factors when making trading decisions. Regularly backtest and refine your strategy based on market conditions and your own experience.
AMEX:SPY
by A1TradingHub
What is the EMA? How to use EMA most effectively!What is EMA? EMA or Exponential Moving Average (EMA) – An exponential moving average (EMA) is a type of moving average (MA) that is based on a weighted exponential formula that is more responsive to changes recent prices, compared to a simple moving average (SMA) that only applies equal weight to all periods, helping the EMA to smooth the price line more than the SMA. What signals does the EMA provide to traders? Moving averages offer a significant benefit by offering clear insight into price trends. In other words, the Exponential Moving Average (EMA) cannot exceed or remain above the price line unless the price is increasing. Similarly, it cannot be below the price line if the price is not actually decreasing. This is crucial for traders as it provides a distinct and reliable indication of the price trend, avoiding any ambiguity. The trend is essential in helping traders identify entry points. The EMA will become a dynamic resistance, because it moves in the direction of the price, which means where the price goes, the EMA will follow. Become dynamic support and resistance levels (these resistance levels can be used to compare the trendline, support and static resistance lines). From here will look for entry points, stop loss and take profit points. Identify price trends. Which EMA should be used most appropriately? EMA 9 or EMA 10: This number represents a two-week period of trading, making EMA9/EMA10 commonly used for short-term transactions. EMA 34/EMA 89 are used to align with the primary waves as per the Elliott wave theory. EMA 20, EMA 50, EMA 200 are closely associated with trading sessions. Over the course of a year, we can typically trade for around 200 days, accounting for holidays and breaks. EMA50 represents the medium term, corresponding to the four seasons in a year, with each season having approximately 50 trading sessions. Similarly, EMA 20 represents the month. Some traders also utilize the 250 EMA in addition to the 200 EMA, believing that 250 represents the number of trading days in a year. EMA100 is a commonly chosen EMA due to its round number value. Round numbers are often seen as psychological barriers in trading. Compare trendline with EMA: As mentioned earlier, EMA is another way to identify trends, just like the trendline. To better understand this concept, the trendline can be seen as a fixed resistance. Once you draw a trendline, it will act as a reference point for the price. On the other hand, EMA is a dynamic resistance. It moves along with the price line. Unlike the trendline, EMA closely follows the price line because it is calculated based on the price itself. This makes EMA more accurate in showing the trend. It can clearly indicate whether the price is above or below the EMA. Some notes with EMA: - When the price surpasses or falls below the EMA, but then retreats below it again, it indicates a strong downtrend or uptrend. - If the price strays too far from the EMA, it is advisable to wait for it to correct itself and return to the EMA before considering any trading actions. - Fast EMAs or short period EMAs are more sensitive to price movements compared to slow EMAs, but they are also more prone to breakdowns. This can be advantageous as it allows for early trend identification compared to the SMA. However, the EMA is likely to experience more frequent short-term fluctuations compared to the corresponding SMA. - EMAs act as dynamic resistance levels that consistently track the price line. - The EMA is not primarily used for pinpointing exact tops or bottoms. Instead, it assists traders in aligning their trades with the prevailing trend. - The EMA always has a delay, making the SMA more useful in sideways markets, while the EMA is more effective in clearly trending markets. Thank you @TradingView !
TVC:GOLDEducation
by Sphyn-Trader
19
AWW🥹 IT'S FORMING >>MATIC<<A BABY EMA IS FORMING ON MATIC. IT'S SO CUUUUTE🥹🥹 YES, YES TOTALLY BUGGING... BUT THIS IS WHAT HAPPENS WHEN ONE STARES TOO LONG AT CHARTS. ONE THING ABOUT CRYPTOCURRENCY IS THE FACT THAT THE ASSETS ARE SO YOUNG (EVEN THOUGH THE CONCEPTS HAVE ACTUALLY BEEN WORKED ON IN THE BACKGROUND FOR DECADES <<MORE ON THAT LATER. Seeing a little EMA budding on longer timeframe made my day. Shorter timeframes always have EMA's, but long term EMA's take f-o-r-e-v-e-r to form. So happy to see a sprout 🌱. As always, take care. #25Sigma
M
by NebulousMercuria
$AMZN - Pennant PatternIn which direction do you guys think this pennant pattern is breaking out to? I'm seeing an RSI bullish divergence freshly created. But I'm also seeing imponent 10 and 50 EMAs right above the price right now. In short, the trend is our friend. That's the overriding principle. However, we also know that every trend eventually bends. In any case, the conclusion to be drawn is that all you have to do with this market is wait and see which direction it wants to take. For it is about to disclose that information. Finally, remember, that direction is meaningless for trading decisions in isolation. We need a target/take profit plan, a stop loss, position size, max ttl equity exposure ... a back tested trading system, confidence and mastery in the execution of such a system. Without these, you're trading blindly. Cheers, Tenacious Tribe - Backtested Trading Strategies & Studies 50% discount on all of our products, in our web, with the following code: MOX Q3C WXRX
NASDAQ:AMZN
by ruben_rodrigues
BNB/USDT had another rejectionHey guys 👋 Let's get back to BNB here where we see how price had another pullback from upper resistance zone and now we are on the edge of a cliff just waiting for a free fall. So let's see how we will end up here. If you like ideas provided by our team you can show us your support by liking and commenting. Yours Sincerely, Swallow Team 🔱 Disclamer: We are not financial advisors. The content that we share on this website are for educational purposes and are our own personal opinions.
Short
by SwallowAcademy
6