Results 1 to 10 of 10
  1. #1
    Junior Member

    what EMA to use? !!!

    Hey guys how can i understand what EMA are most situible for TF i use? Actually im using 2 EMA: 7, 21 on TF 5m,15m,30m,1H (preferred 15m and 30m) and some times 2 EMA: 5,10. But i can't figure out what are best!
    Thanks.

  2. #2
    Active Member BryanCris's Avatar
    I use 4 EMA's the 5, 8, 21, and 55 (fibo numbers) The reason I like 4 is it easily lets me spot the trend on a fast and medium level, and then I basically wait for a pull back on the faster moving ems's they get closer, then as long as the medium moving ones are still spreading apart I can take a trade in the direction of the trend. basically i want to see the EMA's kinda of making a fan and spreading out.


  3. #3
    Specialist Member runneroption's Avatar
    That is good way of trading on short term basis. I also like very much to trade with several EMAs on my chart. This is great way to select the entry points when market is strongly trending but have good retracement points for entering into position.

  4. #4
    Junior Member
    Thank you for the info but can you explain me better how that works? You mean last half of the chart where all EMA crosses the purple one and then pullback in a bullish trend?

  5. #5
    Specialist Member RCox's Avatar
    Quote Originally Posted by jojofra View Post
    Hey guys how can i understand what EMA are most situible for TF i use? Actually im using 2 EMA: 7, 21 on TF 5m,15m,30m,1H (preferred 15m and 30m) and some times 2 EMA: 5,10. But i can't figure out what are best!
    Thanks.
    I think this is actually a great question that deserves more discussion. There are so many MAs traders talk about and it is easy to always ask: Whats the difference, why choose that one? And it is a valid question.

    I tend to watch the ones I think most people are watching. I try to know what the majority is thinking. But I also dont want 15 MAs on my chart, so I just use the 100-day and 200-day averages.

  6. #6
    Specialist Member RCox's Avatar
    Quote Originally Posted by BryanCris View Post
    I use 4 EMA's the 5, 8, 21, and 55 (fibo numbers)
    I have talked to many traders that do the same. But I have yet to head a good reason for "why" anyone should be using Fibo numbers for this.

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by RCox View Post
    I have talked to many traders that do the same. But I have yet to head a good reason for "why" anyone should be using Fibo numbers for this.
    I think the why comes down to Fibonacci theory itself and the Golden Ratio, which is basically why Fib Retracements work, the numbers are based on the relationships found in nature.

    Personally, I only use the 30 bar EMA and sometimes the 150 bar EMA regardless of the time frame. It gives plenty of time to weed out some of the shorter term false signals yet hugs the asset price close enough to give lots of good signals too. The signals are especially strong when they coincide with something like a trend line, support, resistance or Fibonacci Retracement.

    Using two together can give good signals. One can confirm the other and etc. which is the basis for MACD so I just use that instead.

  8. #8
    Veteran Member hchandra's Avatar
    Which one to use, easily the one most people use,
    People usually use EMA 20, 50, 100, 200
    Why use this? from my research this can be because
    20 is monthly data, 1 month have 20 active days for trading
    50 usually 60 this one is for quarterly report, remember there is quarterly report for company listed in market?
    100 Where this coming from? I think this one suppose to be 120 maybe minus holiday
    200 Where this coming from? Same with 100 I think suppose to be 240
    Make sense? maybe

    Other reason, people use longer period because its more accurate and presenting us with average value base on the period shown.
    Imagine this, base on our data, there are 20 suppliers with same quality, average price $10, suddenly 1 supplier reduce their price to $7 because of over quantity, surely we will buy the product, while if there is 1 supplier increase their price to $15 I believe its easy to say... "Too expensive" and maybe we will short it. That is how to use EMA I think, to determine if price at average price, below average price or above average price.

  9. #9
    Junior Member
    Thanks for all your tips folks, just now i ended trying with 3 EMA: 8,21,55. I like the idea of fibonacci numbers cause fibonacci seems really to fit with the PA! The idea is to use the first 2 EMA (8,21) as trending spot, and the 55 EMA as peak retracement and pullbacks. Maybe i will try to add on more EMA, to higher TF i use, like 100/200.

    P.S. i know how much lagging/false signal EMA can be, so im trying to learn PA and use some more indicators/trend line.

  10. #10
    Legendry Member Michael Hodges's Avatar
    Hchandra is right, the best to use are the ones that most people are using. This is becuase you want to track what others are doing to make your predictions. 20 and 30 bar MA's are common for short term traders, 50 100 and 150 for intermediate and longer term traders. When price moves off of one of these averages you can be assured that a very large portion of that segment of the market is behind the move which makes it stronger than a move being made off of some arbitrary MA. does that make sense?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
3