[The correct usage and details of EMA, a million-dollar experience]
Off-topic: I participated in a friend's "Where did the money go" topic in the early stage, and mentioned the use of an indicator EMA in the daily morning meeting communication. At that time, a bearish signal appeared at 27K, and later fell to 24.7K. After this big rebound, I transferred the signal directly. My friend came to me two days ago and confirmed this indicator. He asked me to make a detailed topic so that everyone can copy and use it. I was busy two days ago and didn’t have time to write it. I will finish it today. I also admire the efforts of my friends here, who continue to output high-quality content, and do not forget to output it to all fans. It is worth learning and emulating the big guys!
Main topic
Indicator introduction: EMA, moving average indicator. Here we only share medium and long-term usage. It is very practical and highly accurate.
Applicable groups: Suitable for spot or low-multiple medium and long-term trading users
Applicable targets: High liquidity, high market value, that is, targets with large size and high stability, not suitable for small targets such as copycats
Applicable period: The level above the daily line is the best, with strong stability, and the minimum short-term signal period is not less than 4 hours.
Indicator parameters: EMA21-55-120-200, bear market or bull market are arranged in short position (200-120-55-21 from top to bottom) or long position (21-55-120-200 from top to bottom), initially The signal only looks at the cross signal of EMA21-55
Signal judgment: observe the intersection of EMA21 and EMA55 above the daily line, buy the golden cross and sell the dead cross, strictly implement
How to use and pay attention to details:
1. Buy: Buy when you see the golden cross at the daily level
You can’t buy at the lowest point here, but you can buy with the trend, and the profits will be handed over to time. If you pay attention to the buying position, there are a few points you need to pay attention to.
When trading sideways, the daily golden cross and dead cross will sometimes alternate frequently, causing buying and selling losses, but eventually one party will have a midline continuation, so even if there is a loss, buy and sell signals must be strictly implemented to prevent shortfalls. In order to reduce the loss, you can judge the trend during sideways trading, such as waiting for the price to pull back close to the moving average after forming a golden cross signal, or buy the position first and then wait for the moving average to move closer to the average price to buy and cover the position. Usually EMA21 is close, EMA55 All of the above can be purchased, and there are illustrated case descriptions below.
2. Selling: There are two types of selling
1. Sell if you see a dead cross above the daily line level (in this case, when the mid-term trend is not long, there will usually be a certain amount of profit taking)
2. Sell when reaching the set target (this point can be adopted flexibly according to personal needs and plans. The disadvantage is that it is easy to sell out during the big bull stage)
The above are important points and necessary conditions. For more details, please refer to the illustrated case.
To sum up, the EMA indicator is used to determine the medium and long-term direction. It is used to profit from the trend. It will never buy at the lowest point or sell at the highest point. It can be used flexibly for greater profits and usage.
grateful! Friends who like it can follow Beacon, and we will continue to share more experience and usage of indicators in the future.
