Question
-
Are EMA lines or MAs proving helpful for trading?
6 Answer
<p id="isPasted">Traders use EMA and MA lines</p><p>1. Identifying trend direction: </p><ul><li>A rising moving average (either EMA or MA) indicates an uptrend.</li><li>A falling moving average indicates a downtrend. </li></ul><p>2. Providing dynamic support and resistance: </p><ul><li>In an uptrend, a moving average can act as a support level where the price tends to bounce.</li><li>In a downtrend, a moving average can act as a resistance level. </li></ul><p>3. Generating crossover signals: </p><ul><li>MA crossover: When a shorter-period MA crosses above a longer-period MA, it's often a bullish signal (Golden Cross). When it crosses below, it's a bearish signal (Death Cross).</li><li>EMA crossover: The 8/21 …</li></ul>
1 View