using EMA
EMA is a very popular indicator in forex. I have tried to use different values with it. I want to ask the traders here about how they use it.
Do you use it with a mix of any other indicator? Which EMA u use and on what TF?
I use EMA200 on every timeframe, specially on EURUSD. It really likes it! :)
Originally posted by davidalfonsiI use EMA200 on every timeframe, specially on EURUSD. It really likes it! :)
Yes 200 EMA is very popular as compared to other EMAs. Have u tried 20EMA?
I have seen it works.. but it gives too many fake signals.. and the less indicators .. the better :)
EMAs are quick moving averages but their disadvantage is false signals. so actually 200 or 20 doesnt matter in giving false signals. Its all about how we use it. I think another indicator alongwith EMA is good to minimise false signal risk.
I have tried SMAs. But sasha is right that most of the time, right time of entry is already gone. EMAs give too many false signals which can only be avoided if used with another indicators.
Overall I don't use indicators for directions, I just scalp the EMA200 since the price is likely to bounce on it. For the rest I use Fibonacci and Volumes analysis on the related futures (/6E, FXE, etc.)
Fibonacci is one of largely used indicators. I never used it though but I am very interested in learning it.
I have used EMA 200 on different timeframes.
Stick to your rules
hey guys, would you mind sharing how you trade this EMA200 alone please? at the moment, price is 13pips below the 200EMA, should I go long or short?
EMA at 1.37632 and price @ 1.37502
It is actually used on different timeframes. There is another thread on fxstat about 3-duck system which is about using SMA. 200EMA is also used in similar way. We have to confirm the trend on different timeframes. In the example u quoted, price is below 200EMA but this information alone is not sufficient. You can check it on 4-hr, 1-hr and 15 min timeframe. If 200EMA is below price on all these timeframes, it shows upward trend. Similarly downward trend if 200EMA is above price.
Stick to your rules