When using the triple EMA crossover strategy you are adding three EMA’s to your chart. You can trade it in all different types of markets and on all of your time frames. This is one of the simplest and easiest to use strategies you will find. When we see the EMA’s start to widen away from each other we can then start to see this trend and new move higher is gaining momentum. When the faster moving 8 period EMA moves above the slower moving 21 period EMA we know that price is looking to trend higher. In the example below, we are using the 8 and 21 period EMA’s. However, when using multiple moving averages we can start to gauge a trends strength and also find trading opportunities. One moving average can smooth out the overall price action and give us a good indication of the overall trend. The reason we use multiple moving averages is to gain a better insight compared to what we do when only using one moving average. With an EMA crossover strategy we are using multiple exponential moving averages. In this post we use and concentrate on the EMA for our trading strategies. Where the SMA is just averaging the price out over a certain period, the EMA adds more weight into the recent price when forming. The reason the exponential moving average or EMA is so popular with many traders is because it focusses more on the recent price than the simple moving average does. There are two popular types of moving averages Moving Average Crossover Alert Indicator for MT5.
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