David's four emas

2019년 3월 30일

The 200 ema gives the overall big trend. You can use it to choose long only or short only setups. The 20 and 50 emas allow you to find an "area of value", so that in a down trend for instance, a pullback to this area could provide an area for a possible short using a chart pattern such as a double top on a lower time frame, a break of support or a bearish engulfing candle. The 5 ema is another possible entry to a trend if there are no pullbacks. After (say) five consecutive closes on one side of the 5 ema then we have a possible short entry at that low (or a fraction of the ATR below it) which gets us into the trend.