$BTC
Applications of Exponential Moving Average (EMA) in Technical Analysis 👑
🔴 Identifying the Overall Trend:
If the price is above the long-term EMA, it indicates an upward trend.
If the price is below the long-term EMA, it indicates a downward trend.
🔴 Entry and Exit Signals:
Buy Entry: When the price crosses the EMA from below to above.
Sell Entry: When the price crosses the EMA from above to below.
🔴 Crossover Strategy:
〰️ Bullish Crossover: When the short-term EMA crosses above the long-term EMA, it is considered a buying opportunity.
〰️ Bearish Crossover: When the short-term EMA crosses below the long-term EMA, it is considered a selling opportunity.
🔴 Combining with Other Indicators:
EMA can be used with MACD or RSI to confirm signals and increase the accuracy of the analysis.
