oussama94
05-28-2017, 01:29
Aside from identifying trends, EMAs are also
used to signal trading opportunities. You could
plot two EMAs with a diferent number of periods
on the same chart, for example a 12-period
EMA and a 26-period EMA, and look out for
the lines crossing - depending on whether the
shorter period EMA is heading above or below
the longer period EMA, it can be seen as a signal
to buy or sell, respectively. Note that when the
EMA goes flat and only fluctuates a little, it
identifies a trendless market, and one should
not trade using indicators suited for trending
markets.
used to signal trading opportunities. You could
plot two EMAs with a diferent number of periods
on the same chart, for example a 12-period
EMA and a 26-period EMA, and look out for
the lines crossing - depending on whether the
shorter period EMA is heading above or below
the longer period EMA, it can be seen as a signal
to buy or sell, respectively. Note that when the
EMA goes flat and only fluctuates a little, it
identifies a trendless market, and one should
not trade using indicators suited for trending
markets.