![]() If the price moves below the EMA, we’re in a bearish downtrend and a trader can consult other indicators to confirm the trend before opening a short trade. Upon confirmation from other candles, a trader can open a long trade. If the price moves above the EMA, we might be in a bullish uptrend. The EMA indicator appears as a line that oscillates around the Bitcoin candles. ![]() Along with the Simple Moving Average ( SMA), the EMA is arguably the most important moving average indicator in trading, and among the top 10 most popular indicators for crypto trading. The Exponential Moving Average (EMA) is a type of moving average indicator that places weight on recent price trends, and is used for trend confirmation, divergence, and crossover trading. What Is The Exponential Moving Average (EMA) Indicator? ![]() The two common types of moving average indicators are exponential moving average and simple moving average. Appearing as trend lines on the candles, it indicates the average price of an asset over an n-period. Moving averagesare measurement tools used to identify the direction of a price trend. Conversely, they can open a short trade once the price rises above the EMA line.
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