Multiple EMA

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An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average (SMA), which applies an equal weight to all observations in the period.

*The EMA is a moving average that places a greater weight and significance on the most recent data points.
*Like all moving averages, this technical indicator is used to produce buy and sell signals based on crossovers and divergences from the historical average.
*Traders often use several different EMA lengths, such as 10-day, 50-day, and 200-day moving averages.

Points to remember:

• Exponential moving averages are more sensitive to the recent price
  
• EMA can signal good trades, but it can also keep you out of bad trades
  
• EMA offers dynamic support and resistance levels, which is good for trailing Stop Loss
  
• The EMA slope shape has hidden secrets
  
• The rules for the EMA trading strategy can be modified to fit your own trading needs. We don’t claim this to be hard rules, but they are good on their own to make for a great trading strategy. Make sure you first test out the EMA strategy on a paper trading account before you risk any of your hard-earned money