How to identify an uptrend using EMA:
- Use 8 EMA and 21 EMA lines.
- A long position signal happens when the 8 EMA crosses above the 21 EMA.
- EMA reacts faster to price changes than simple MA.
- When the EMA lines get close to the current price candlesticks, it signals a potential uptrend.
- 8 EMA staying above 21 EMA means a strong uptrend is in play.