1. Core characteristics of EMA

Exponential Moving Average (EMA) gives more weight to recent prices, responding faster than Simple Moving Average (SMA), making it suitable for capturing trend changes. Common parameters include:

- Short-term EMA: 5, 12, 20 (capturing short-term fluctuations)

- Mid-term EMA: 50, 100 (judging mid-term trends)

- Long-term EMA200 (the boundary between bull and bear markets)

2. Usage of EMA in different timeframes' candlestick charts

1. Ultra-short-term trading (1-minute to 15-minute charts)

- Applicable scenarios: High-frequency trading, scalping

- Parameter combination: EMA(5)+EMA(20)

- Strategy:

- Golden Cross/Death Cross: Go long when EMA5 crosses above EMA20, go short when it crosses below.

- Price and EMA relationship: Price stabilizes above EMA5 and the slope is upward, trade in the direction of the trend.

- Filter noise: Combine RSI overbought/oversold signals (>70/<30) for counter-trading.

- Case: In the 15-minute chart, when EMA5 and EMA20 form a golden cross, if the trading volume increases, it can be considered an effective signal.

2. Intraday trading (hourly/4-hour charts)

- Applicable scenarios: Intraday swing trading

- Parameter combination: EMA(12)+EMA(50)

- Strategy:

- Trend confirmation: EMA12 is above EMA50 and the two lines are diverging upwards, confirming a bullish trend.

- Pullback to EMA support: Buy on dips when the price retraces to EMA12 or EMA50.

- Divergence signal: New price highs but EMA has not reached new highs, beware of reversals.

- Case: In the EUR/USD hourly chart, the price rebounds after a pullback to EMA50, combined with MACD histogram reducing and turning positive, entry for long can be considered.

3. Swing trading (daily chart)

- Applicable scenarios: Holding positions for days to weeks

- Parameter combination: EMA(50)+EMA(200)

- Strategy:

- Bull/Bear boundary: Prices above EMA200 indicate a long-term bull market, while below indicates a bear market.

- Golden Cross/Death Cross: EMA50 crossing above EMA200 triggers a long-term buy signal, and vice versa for sell.

- Dynamic support/resistance: EMA50 often becomes a pullback support during an upward trend.

- Case: In the S&P 500 daily chart, EMA50 crossing above EMA200 (Golden Cross) usually indicates the start of a bull market.

4. Long-term investment (weekly/monthly charts)

- Applicable scenarios: Value investing, asset allocation

- Parameter combination: EMA(50 weekly)+EMA(200 weekly)

- Strategy:

- Trend following: Hold when long-term EMA is rising, reduce positions when it is falling.

- Extreme deviation: A significant price deviation from EMA200 (e.g., >20%) may revert to the mean.

- Cross-timeframe validation: When the weekly EMA direction aligns with the monthly EMA, the signal is more reliable.

- Case: After Bitcoin's weekly price breaks below EMA200, it often enters a long-term bear market.

3. Multi-timeframe EMA combination strategy

- Triple filter method:

1. Weekly: Use EMA50/200 to judge the main trend direction.

2. Daily chart: Wait for the EMA12 and EMA50 golden cross/death cross to confirm entry opportunities.

3. Hourly chart: Look for precise buying points when the price retraces to EMA20.

- Reverse validation: If the hourly EMA signals contradict the daily trend, abandon the trade.

4. Precautions

1. Lagging: EMA is based on historical data and needs to be combined with price patterns (such as breakouts, head and shoulders) to anticipate in advance.

2. Market environment: In a choppy market, EMA crossovers frequently fail; Bollinger Bands or ADX can be used for filtering.

3. Parameter optimization: Different instruments (stocks/forex/cryptocurrencies) need to test for optimal EMA periods.

4. Combination indicators: Pair with volume, MACD, or ATR (volatility) to improve win rates.

5. Summary

- Short-term: Focus on EMA quick crossovers and immediate price reactions.

- Mid-term: Rely on EMA support/resistance and trend continuation.

- Long-term: Use EMA200 to judge bull and bear markets, with the Golden Cross as a strategic signal.

Through multi-timeframe EMA synchronized analysis, traders can achieve a trading logic of 'following the major trend and countering the minor trend' across different time frames, significantly improving decision quality.