$CFX EMA 20 and EMA 200 are two types of Exponential Moving Averages commonly used in trading to analyze price trends over different time periods.
๐น What is EMA (Exponential Moving Average)?
EMA is a moving average that gives more weight to recent prices, making it more responsive to new data compared to the Simple Moving Average (SMA).
This helps traders identify the direction of trends and potential entry or exit points.
๐ธ EMA 20 (Short-Term Trend)
Tracks the average price over the last 20 periods (e.g., days, hours).
Used for short-term trading (e.g., scalping or swing trading).
Quick reaction to price changes.
โ When the price is above EMA 20 โ short-term uptrend
โ When the price is below EMA 20 โ short-term downtrend