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Exponential Moving Average (EMA)

THETABTC | S/R Flip | Trend Reversal | Trade SetupToday's analysis – THETABTC – Putting in an S/R flip retest of daily support. Price holding this level validates a long trade to structural resistance. Points to consider: - Trend Reversal (S/R flip) - 21 EMA (visual guide) - Bearish divergence (playing out) - Stochastics above 50 - Low Volume THETABTC forming a probable higher low above daily support as it retraces for a retest. Price holding this level will indicate first signs of a trend reversal as the market builds momentum to the upside, establishing a bullish bias. The 21 EMA will act as a visual guide as the trend develops and price respects the MA assisting in trade management. Bearish divergence playing out as price tests support. Both oscillators need to hold and range above 50 to maintain the bullish bias. Volume is low and below average, usually, an indication of an influx being imminent. Overall, in my opinion, s successful retest of the daily support level validates a long trade to structural resistance with risk defined (SL) below support zone. What are your thoughts? If you’ve read this far - thank you for following my work! And as always, Focus on you, and the money will too!
Long
by Kudiiee
2
DGBBTC | Ascending Triangle | Apex | Resistance Cluster Todays Analysis – DGBBTC – Trading within a multi-month ascending triangle, nearing its apex as support and resistance converge. Points to consider: - Resistance cluster - Higher lows - apex - 200 EMA – visual guide - Low volume - RSI above 50 – higher low projection - Stochastics overbought DGBBTC unable to break and hold above daily resistance after multiple failed attempts over a multi-month period indicates a strong resistance cluster. Price action has been forming a higher low projection as it convergence into daily resistance. A break in either direction is imminent as price coils into its apex. DGB respecting the 200 EMA, allowing it to act as a dynamic support. Price trading above the EMA is perceived bullish; breaking below considered bearish. Volume has been declining and remaining below average. Historically, an inflow of volume has coincided with bullish price action, indicative of an influx being probable at the retest of daily resistance. RSI breaking above 50, trading in a higher low projection indicating increasing strength in the market. Stochastics are overextended, although they may remain there for some time, momentum has been stored to the downside. Overall, in my opinion, further price development will determine a directional bias. An S/R flip re-test of daily resistance with volume follow through validates a conservative entry for a long trade with technical target of structural resistance. However, breaking below trend support, price will likely retrace to structural support. What are your thoughts? If you’ve read this far - thank you for following my work! And as always, Focus on you, and the money will too!
by Kudiiee
2
GBPUSD 4H EMA SHORT TRADING STRATEGYExponential Moving Average Strategy (Trading Rules – Sell Trade) Our exponential moving average strategy is comprised of two elements. The first degree to capture a new trend is to use two exponential moving averages as an entry filter. By using one moving average with a longer period and one with a shorter period, we automate the strategy. This removes any form of subjectivity from our trading process. Step #1: Plot on your chart the 20 and 50 EMA The first step is to properly set up our charts with the right moving averages. We can identify the EMA crossover at the later stage. The exponential moving average strategy uses the 20 and 50 periods EMA. Most standard trading platforms come with default moving average indicators. It should not be a problem to locate the EMA either on your MT4 platform or Tradingview. Step #2: Wait for the EMA crossover and for the price to trade below the 20 and 50 EMA. The second rule of this moving average strategy is the need for the price to trade below both 20 and 50 EMA. Secondly, we need to wait for the EMA crossover (20 ema below 50 ema), which will add weight to the bearish case. By looking at the EMA crossover, we create an automatic buy or sell signals. Since the market is prone to false breakouts, we need more evidence than a simple EMA crossover. At this stage, we don’t know if the bearish sentiment is strong enough to push the price further after we sell to make a profit. To avoid the false breakout, we added a new confluence to support our view. This brings us to the next step of the strategy. We refer to the EMA crossover for a sell trade when the 20-EMA crosses below the 50-EMA. Step #3: Wait for the zone between 20 and 50 EMA to be tested at least twice, then look for selling opportunities. The conviction behind this moving average strategy relies on multiple factors. After the EMA crossover happened, we need to exercise more patience. We will wait for two successive and successful retests of the zone between the 20 and 50 EMA. The two successful retests of the zone between 20 and 50 EMA give the market enough time to develop a trend. Never forget that no price is too high to buy in trading. And no price is too low to sell. Note* When we refer to the “zone between 20 and 50EMA,” we actually don’t mean that the price needs to trade in the space between the two moving averages. We just wanted to cover the whole price spectrum between the two EMAs. This is because the price will only briefly touch the shorter moving average (20-EMA). But this is still a successful retest. Now, we still need to define where exactly we are going to sell. This brings us to the next step of the strategy. Step #4: Sell at the market or a limit order when we retest the zone between 20 and 50 EMA for the third time. If the price successfully retests the zone between 20 and 50 EMA for the third time, we go ahead and sell at the market price inside the zone with a bearish candle close or limit order at 50 ema line. We now have enough evidence that the bearish momentum is strong to continue pushing this market lower. Now, we still need to define where to place our protective stop loss and where to take profits. This brings us to the next step of the strategy. Step #5: Place the protective Stop Loss 20 pips above the 50 EMA After the EMA crossover happened, and after we had two successive retests, we know the trend is down. As long as we trade below both exponential moving averages the trend remains intact. In this regard, we place our protective stop loss 20 pips above the 50 EMA. We added a buffer of 20 pips because we understand we’re not living in a perfect world. The market is prone to do false breakouts. Step #6: Take Profit once we break and close above the 50-EMA In this particular case, we don’t use the same exit technique as our entry technique, which was based on the EMA crossover. If we waited for the EMA crossover to happen on the other side, we would have given back some of the potential profits. We need to consider the fact that the exponential moving averages are a lagging indicator. The exponential moving average formula used to plot our EMAs allow us to still take profits right at the time the market is about to reverse.
Short
by Tradingstrategyguides
2
Ethereum Daily AnalysisEthereum seems to have made a daily bull flag. Of Course after it breaks upwards from this flag, Ethereum might reach new local highs. In the mean time it has met yearly dagonal resistance. This makes it likely for Ethereum to retest the 230$ support zone (green). It is still bullish on the daily time frame since it has not closed below the daily EMA Ribbon. This indicates that the daily bullish trend is still intact and we should expect new local highs with it. The target for the breakout of the bullflag is 275$. IF Ethereum does meet this level, it will likely continue upwards to the 280$ level where it meets heavy resistance. We should also keep in mind that the 250$ level is also heavy resistance.
COINBASE:ETHUSD
by JayT121
Bitcoin is ramping up for a huge breakout! Bitcoin in the recent days and weeks has formed a Ascending triangle.This has been after the recent double bottom we say a few days ago. This is bullish because Bitcoin has maintained its upwards trend. Bitcoin will likely find the top of the triangle as immediate resistance. Get ready guys because The target for this breakout is about 11.6k which gives a nice risk to reward ratio. The volume has been declining as evident by the volume indicator. This is significant because when volume decreases, it means that there will soon be a breakout with massive volume spikes relative to the rest. Bitcoin has held it's macro upwards trend by closing above the daily EMA Ribbon. As indicated by previous moves, when Bitcoin closes below the EMA ribbon, it usually indicates the ending of the daily trend. Remember guys " The trend is your friend to the end". Shorting before Bitcoin breaks out of this zone maybe detrimental because the trend is still intact. If Bitcoin breaks out of the ascending triangle, then the next biggest resistance is the 10.6-10.8k level . Keeping in mind that there is a CME gap at 11.8k, it makes it more likely that Bitcoin will come up to fill this level since most CME gaps in the daily time frame get filled. For more tutorials you can go to https:cryptoatlas.net ! Good luck guys!
BITSTAMP:BTCUSD
by JayT121
3
RSI and breakoutsIve noticed that when : 1The RSI hits below 30 on the 30min sometimes 1hr time frame 2Then goes up to just before 70 ...say 67 on the RSI 3Then drops again to 25-29 THAT'S A BUY I think that would indicate a breakout to the upside. The RSI will go up and down in wave patterns. This doesn't mean the price will follow. BE CAREFUL. So, if it has to hit 70 on the RSI but doesn't. Then drops ,all those people who FOMOed in are FOMOing out at a lower price bringing it up but with more volume. THIS IS JUST ME TALKING AND NOT ADVICE.
KEducation
by UnknownUnicorn5174798
BMY Long, Using EMA144 as SupportCondition: 1.Runaway Gap (G1) Shows 40% of this trend. 2.V Pattern 3.demand zone confirmed. 4.Cross Over EMA144 Earning date: 8/6/2020 7:00 AM ET -- Earning will not affect this plan. Entry: 61 Stop: 59; Target1: 67; risk/reward=1:3 Target2: 74; risk/reward=1:6 Using EMA144 as Support is one of my long entry script. See the linked Related Idea. This is a trading school homework. I need few months to practice trading plan. If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
NYSE:BMYLong
by PlanTradePlanMM
1
PG Long, Using EMA144 and SMA50 as support I combined my two scrips: Buy in long term uptrend and Draw SMA50 swing I found EMA144 also good to be used in 60M chart to verify trend direction. Condition: Weekly chat: V Pattern, 60M: 1.Double Bottom 2.SMA50 Cross Over EMA144 3.Demand zone is confirmed 4.Trend line Break (TLB1) Earning date: 7/17/2020 7:00 AM ET -- Earning will not affect this plan. Entry: 117 Stop: 114.5; when Below EMA144 Target: 125; risk/reward=1:3 This is a trading school homework. I need few months to practice trading plan. If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
NYSE:PGLong
by PlanTradePlanMM
3