Saturday, August 29, 2009

How To Use EMA (Exponential Moving Averages)

Moving averages is a way to smooth price action. From that definition, you should have bear in mind that indicator really helps you to see prices in Forex markets.

What I would like to share with you is how to use EMA or Exponential Moving Averages. As you already know, EMAs are quicker to respond to price action and can catch trend early but susceptible to spikes and can fake you out.

I learned this technique from the internet and it really helps me in Forex trading. It is suitable in any timeframe but the higher the timeframe the fewer the spikes.

Try EMA(3, Yellow) and EMA(30, Red). Wait for the EMA(3, Yellow) crosses EMA(30, Red) and Yellow is above Red, then BUY and if Yellow is below Red, then SELL.

Try this technique on a demo account first and use some filters. If it's okay with you, then you can stick to this technique.


Bookmark and Share


Post a Comment


The Forex Indicators © 2008 Business Ads Ready is Designed by Ipiet Supported by Tadpole's Notez