The technology and skills of using EMA in the cryptocurrency circle

There is not much to say about the market, but it should be noted that, regardless of the bull or bear market, timely stop loss and profit is crucial for every investor. Be cautious against greed and impatience, and only by cashing in your chips can you determine the final profit. Don't try to pocket all the profits. Only by quitting when you are ahead can you effectively avoid risks.

Trading must not be emotional. If you are in a good mood, you will sell everything you have and use high leverage. If you are in a bad mood, you will operate blindly without considering the cost. If you do this, I am afraid that your enthusiasm will end up in failure. When investing, the amount of profit is secondary, and protecting the principal is the primary. If you can't even protect the principal, how can you talk about locking in profits and making huge profits?

So, today we are going to talk about the exponential average (EXPMA indicator) and common K-line technical patterns.

First, let's take a look at the EXPMA indicator, which is a trend indicator that uses an exponentially decreasing weighted moving average. Its construction principle is to perform arithmetic averaging on the closing price and analyze it based on the calculation results to determine the trend of future price movements.

So, in actual cryptocurrency trading, what are the buying and selling techniques of the EXPMA indicator? First, let’s take a look at the buying techniques:

①. The EXPMA indicator forms a golden cross, the price reverses and rises, the trading volume increases, buy;

②. When the EXPMA indicator turns flat or upward, and the price crosses above the EXPMA indicator, buy when the price closes with a positive line.

③. When the EXPMA indicator moves upward and the price falls below EXPMA, the price will reverse and rise. Buy when the price rises by more than 4%.

④. The EXPMA indicator moves upward, the price adjusts to confirm its support, and a reversal upward K-line appears to buy;

⑤. When the EXPMA indicator points downward and the price moves away from the EXPMA indicator, the price oversells and reverses to rise, the trading volume increases, or a reversal and rising big positive line appears, buy.

The selling technique is just the opposite:
①. The EXPMA indicator forms a dead cross, and the price reverses and falls to sell;

② When the EXPMA indicator turns flat or downward, and the price crosses below the EXPMA indicator, sell when the price closes with a negative line;

③. The EXPMA indicator is pointing downward, the price breaks through EXPMA, stagflation reverses and falls, and the high point is lowered to sell;

④. The EXPMA indicator is pointing downward, the price rebounds to confirm its pressure, and a reversal falling K-line is sold;

⑤. When the EXPMA indicator is pointing upward, the price rises rapidly and moves away from the EXPMA indicator. When the price stagnates and reverses to fall, sell it.

Of course, all the techniques summarized here are just for reference. When operating, you need to evaluate and analyze according to your own investment habits and investment priorities. After all, the existence of market inefficiency and individual differences among investors, bookishness or plagiarism will lead to disparity in the final results. Moreover, EXPMA is not necessarily accurate and universally applicable. It should be noted that the golden cross buying we emphasize needs to meet the following conditions:

①. The EXPMA indicator and the MACD indicator should form resonance;

② Check whether the MACD indicator crosses the 0 axis;

③. Check whether the EXPMA indicator has formed a golden cross before the day when the MACD indicator crosses the 0 axis.

If the above conditions are all true, you can choose to increase your position. If the answer is no, it is better to observe and wait for the right time before buying.

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