Why using 8 & 20 EMA? (Part 1)

EMAs are commonly used in conjunction with other indicators to confirm significant market moves and to gauge their validity. For traders who trade intraday and fast-moving markets, the EMA is more applicable. Quite often traders use EMAs to determine a trading bias. For example, if an EMA on a daily chart shows a strong upward trend, an intraday trader’s strategy may be to trade only from the long side on an intraday chart.

There is not much different to use 9 & 20 EMA instead of 8 & 20 EMA. But there is a lot different by using 20 & 50 EMA, or 50 & 200 EMA. I know you understand what is a "golden cross" and what is a "death cross". In my point of view, they are just some names to control amateurs mind. Amateurs will be scared when there is a death cross happened on a market.

In this example, I compare two stocks by using 8 & 20 EMA and simple candlestick patterns to spot entry and exit positions. In the next example, I will use 20 & 50 EMA. You will see the difference.