Sentences with phrase «ema in a trending market»
Not exact matches
I should also note that mean reversion tools, such as the 10 and 20 EMAs, work best in a trending market.
https://dailypriceaction.com/
You should look at how prices are reacting near the moving averages (value zone), if the price is respecting those EMA levels and repelling / bouncing away from them on several occasions, you have good evidence the market is trending (a concept I call a «perfect trend» and expand on in more more detail in my price action trading courses).
The 21 day EMA typically allows your trade to run for longer since it is less likely to get hit in a strong trending market than the 8 day EMA.