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EMA 200 DAILY FRAME – THE "TIME-TRAVELING" TOOL OF COIN TRADERS
If you are new to trading coins, you may have heard of the name EMA 200 – a simple yet extremely powerful tool for determining the long-term trend of the market.
So what is the EMA 200 daily frame, and why do professional traders "revere" it as a guiding star?
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1. What is EMA 200?
EMA (Exponential Moving Average) is the exponential moving average – it reacts faster compared to SMA (Simple Moving Average) because it prioritizes the most recent data.
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EMA 200 daily frame = average closing price of the last 200 days (on the daily chart).
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2. What does EMA 200 say about the trend?
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Price above EMA 200 → The main trend is up → Prioritize BUY.
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Price below EMA 200 → The main trend is down → Prioritize SELL or stay out.
In other words: EMA 200 = the boundary between "bull" and "bear market".
Recently, it has bounced off the EMA 200 daily frame and has risen strongly.
However, there were periods before that continually sideway cutting up and down EMA 200, this is called noise, to avoid this segment please read the next article.
