

Place a buy order a few pips above the breakpoint of this candlestick, anywhere from 10-15 pips.The candlestick that is formed after the price breaks the 200 EMA point is your entry candlestick.

200 EMA LINE HOW TO
In this article, we'll discuss how to make use of the EMA periods individually, starting with the 50 EMA. Many traders utilize them individually or simultaneously in their trading system. EMA is slightly different than a Simple Moving Average (SMA), in which it puts more significance on the more recent prices so the indicator is known to be more responsive and faster-moving than the SMA.Īmong the many periods of EMA, the 50 and 200 EMA are the most popular ones.

It is a technical indicator tool that moves along with the price movement and identifies the trend direction. These 50 EMA and 200 EMA trading strategies are good examples of that.ĮMA stands for Exponential Moving Average. Setting up a good trading strategy doesn't have to be complicated.
