Today i gonna explain "Exponential moving average crossover traiding strategy" that can help you to find best optional Entry point.
What is EMA?
EMA is a type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. This type of moving average reacts faster to recent price changes than a simple moving average, so you are able to find much more accurate entry points. The EMA is the most common used technical indicator, it gives you simple and clear signals.
So I use most common EMA settings (12 ;26). The strategy is very simple when the (12)Green line is under the (26)Red line, it signals great entrey point(BUY), and when (12)Green line is Above the (26)Red line it's a Strog signal to Sell.
So the benefit of the EMA indicator is its visual simplicity. Traders can quickly assess the prevailing trend of price behavior from the direction of the EMA.
But Remember EMA is not allways 100% accurate, to be 100% sure you need to use multiply Indicators.