How to use indicators on Binance:
EMA (Exponential Moving Average) helps you, as a trader, to catch trends, make entry/exit decisions, and filter out fake signals.
Explaining below – how to use EMA in trading step by step (in simple Bengali)
✅ 1. Identify the trend (Trend Direction)
🔹 Rule:
If the price is above EMA 20 or EMA 50 → uptrend
If the price is below EMA 20 or EMA 50 → downtrend
📌 Example:
You are looking at a 1-hour chart. If the price is above EMA 20, then understand:
🔼 The market is now bullish (uptrend)
✅ 2. EMA Bounce Strategy – Buy on dip
🔹 How does it work?
When the market is in an uptrend, the price occasionally comes close to EMA 20 or 50 and 'bounces' back up.
📌 Strategy:
1. When the price approaches EMA 20/50
2. You can check RSI (30-40 is good)
3. Buy if there is a confirmation candle (green candle)
🎯 Target: Previous resistance level
🛑 Stop Loss: Slightly below EMA
✅ 3. EMA Crossover Strategy
🔹 What happens here?
Two EMAs are used: small EMA (20) and large EMA (50)
📌 Signal:
How to understand the signal:
Buy Signal EMA 20 ➡️ crosses above EMA 50
Sell Signal EMA 20 ⬇️ crosses below EMA 50
📝 Generally works well in 1H, 4H, 1D timeframes
✅ 4. EMA + RSI strategy (best combo!)💥
Catch the trend with EMA
Understand Overbought/Oversold with RSI
📌 Example:
Price is near EMA 20, RSI < 40
So: market oversold + support level → Buy Signal🔥
✅ 5. EMA Breakout Strategy
EMA 200 → acts as a strong support or resistance
If the price breaks above EMA 200, a big uptrend may begin
If the price breaks down → Sell Signal
