![]() Once you start using it you will eventually know through experience, if a signal is false or does it really a buy or sell. Whichever tools and indicators you are using for your trading and investing purpose, make sure you have basic understanding of them. Where as the 50, 100 and 200 EMAs are considered to be useful for longer-term trend trading.The most generally used EMAs by traders are the 5, 10, 12, 20, 26, 50, 100, and 200.A trader might use crossovers of the 50 EMA by the 10 or 20 EMA as trading signals.To put it another way It may give you false or fake signals. EMA is also more vulnerable & get exposed as EMA reacts faster when the price is changing direction.A long -term plunging MA, moving from a higher to a lower level reflects a long-term downtrend.A long-term MA moving from a lower position to a higher one reflects a long-term uptrend.In other words one should look at buying opportunities. A rising moving average shows that prices are generally increasing.Hence this moving can be used to determine buying and selling opportunities in market. ![]()
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