How to trade with EMA?

Trade with the trend

We can trade with the trend with EMA in the following cases:

- The price line is above the EMA in each time frame, confirming the uptrend for that EMA in the corresponding time frame. We should only watch to buy, not sell.

- Conversely, if the price line is below the EMA in each time frame, it confirms the downtrend for that EMA in the corresponding time frame. We should only watch to sell, not buy.

- A horizontal EMA line that crosses the price line back and forth confirms the sideway price line, there is no clear trend for that EMA in the corresponding time frame. We should wait for a clear confirmation signal before trading.

The smaller the EMA with the index, the more closely it follows the price line and the more susceptible it is to noise. Therefore, using a smaller EMA to determine the trend is more inaccurate. You should use EMA on the D1,H4 time frame to confirm the long-term trend of the market. And EMA is an indicator that confirms the trend because its lag causes the market to run ahead for a period of time.

#mia