to learn Trading Strategy as well as the basics of support and resistance here: Support and Resistance Zones Road to Successful Trading. Also, please give this strategy a 5 star if you enjoyed it! The exponential moving average is a line on the price chart that uses a mathematical formula to smooth out the price action. The exponential moving average formula is more reliable and more accurate in forecasting future changes in the market price. Depot at 2009 nov. Indicators: EMA 9, 20, 55, 120, 200; optional: ADX 14, Heikin-Ashi-Candles, Fibonacci Lines, Support Resistance, Pivot Points. Secondly, we need a multiplier that makes the exponential moving average to put more focus on the most recent price.

21-period RSI (RSI 21) Entry Rules for Long. However, using the EMA crosses may not be the best add-on to the RSI strategy. EMA -4-MTF-Strategy Manual Trading System Exponential Moving Averages For Multiple Time.

Please leave a comment below if you have any questions about Moving Average Strategy! The general rule is that if the price trades above the exponential moving average were in an uptrend and as long as we stay above the exponential moving average we should expect higher prices. The second rule of the exponential moving average strategy is the need for the price to trade above both 20 and 50 exponential moving averages and secondly, we need to wait for the EMA crossover which will add more weight to the bullish case. The oldest form of technical analysis and one of the most popular trading indicators used by thousands of traders is the exponential moving average. Profit since 2009 nov. Most standard trading platform come with default moving average indicators so it should not be a problem to locate the EMA either on your MT4 platform or Tradingview. Step #3: Wait for the zone between 20 and 50 EMA to be tested at least twice, then look for buying opportunities. ( 9 votes, average:.78 out of 5) Loading. Now, before diving into some of the key rules of the exponential moving average strategy, lets first examine what a moving average is and the exponential moving average formula.