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HOW TO MASTER EMA AND USE IT AS A PRO TRADER

Hello Traders, today I will share with you all the trick how to use EMA as a pro trader.

First of all, open EMA from indicators. Click 3 times on EMA and on the leftmost top of the screen you will find –

1) EMA 9 close 0 SMA 5 current stock price in blue colour

2) EMA 9 close 0 SMA 5 current stock price in blue colour

3) EMA 9 close 0 SMA 5 current stock price in blue colour

First change the length of 1st EMA to 20 and make it blue colour

Then change the length of 2nd EMA to 50 and make it red colour

Then change the length of 3rd EMA to 200 and make it black colour

You can change it to any colour according to your choice but for me these three colours are easier to read in the chart.

To change the colour, click the setting of EMA on the top column of box click on Style then you will see EMA written and in front of it the colour of it. Change the colour according to your choice.

THE TRICK OF USING EMA

Now the trick is you will see three lines of blue, red and black in the chart. Blue line is close to candle, red line is little away from the candle and black line is far away from the candle. You have to see in the chart that if the candle make base on any three lines, then it is a signal of bullish and market will go up. But wait do not enter immediately first see the first three candle which I have taught in my previous EMA blog. If the blue line cut the red line from down then market will be short time bullish. And if both blue and red line cut the black line from down then market will be long time bullish. Same applied to when the blue line cut the red line from above then market will be short time bearish. And if both blue and red line cut the black line from above then market will be long time bearish.

Sometimes there is a false signal also you will notice that the candle is above the black, blue or red line but the market reverse and instead of going up it comes down. To avoid these false signal you should use Supertrend indicator and pivot point indicator.

Supertrend Trick in EMA

Supertrend should be in green when candle is above the EMA lines and Supertrend indicator should be in red when candle is below the EMA lines. Also see that if the candle is above the EMA lines Supertrend should be green and should be below the candles. And if the candle is below the EMA lines Supertrend should be red and should be above the candle.

Pivot Point Trick in EMA

If the candle is above the line and cross the blue, red and black line don’t enter immediately. First see that if there is any pivot yellow line is just above the red, blue and black line don’t enter the market thinking that the market will be bullish. First see that the candle should cross the yellow line. If it successfully crosses the yellow line and the next candle should be above the yellow line then you can enter. And if it the candle crosses the yellow line but the second candle fail to come above the yellow line it can be a signal of reversal. Same applied to when the candle is below the blue, red and black line. First see that if there is any pivot yellow line is just below the red, blue and black line don’t enter the market thinking that the market will be bearish. First see that the candle should cross the yellow line. If it successfully crosses the yellow line and the next candle should be below the yellow line then you can enter. And if it the candle crosses the yellow line but the second candle fail to come below the yellow line it can be a signal of reversal.

I WILL ALSO POST THE BLOGS ON PIVOT POINTS, SUPERTREND AND OTHER INDICATORS

DISCLAMIER:

It is only for educational purpose which I have studied and test in the market. Any decision you take during the market is your own responsibility.




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