The exponential moving average is one of the oldest form of technical analysis. It is one of the most popular trading indicators used by thousands of traders. In this step-by-step guide, you’ll learn a simple exponential moving average strategy. Use what you learn to turn your trading around and become a successful, long-term trader! A moving average can be a very effective indicator. Many traders use exponential moving averages, an effective type of moving average indicator, to trade in a variety of markets. We will be using the exponential moving average indicator together with price action forex strategy to increase ours odds of success in the market
An exponential moving average strategy, or EMA strategy, is used to identify the predominant trend in the market. It can also provide the support and resistance level to execute your trade.
On 21st Jan 2020, AUDUSD traded down and closed below the 21, 50 and 200 Exponential Moving Averages (EMA) and closed below previous support line
The exponential moving average (EMA) used together with price action analysis is a simple yet effective strategy.. The price action on the charts allows us to determine key areas in the chart and the EMA provides confirmation of the trend and also an area of value to enter into the market. .
Recommended Reads
“Support & Resistance” at abted.com