How do I trade with EMA
EMA is one of the tools I am currently using. On the EA side, the daily closing price is equally weighted. However, when it comes to EMAs, the day's closing price has the most weight.
Next, I will discuss my utilization of EMA. As shown in the image below, I apply SQQQ as an example.
Next, I will discuss my utilization of EMA. As shown in the image below, I apply SQQQ as an example.
I used EMA20 here(Refer to the chart below). EMA20 is the support line for this ETF, while the stock price is above the line of EMA20. When it breaks below the support line, it means the stock price has weakened in the short term; thus, I will choose to reduce my position. Conversely, when the stock price breaks through EMA20, I will increase the position after considering the market factors.
Overall, I generally do not trade when the stock price falls below the EMA20 line because it would significantly risk me. EMA20 is one of the most critical short- to medium-term trading indicators, and I hope you will enjoy it and feel free to share your ideas
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