Besides, this strategy is definitely worth noting due to the psychological effect that can occur in the market's price movements around the 200 EMA line. In contrast, the longer the period, the less sensitive the results are.Ģ00 EMA is one of the most well-known EMA periods to use in the forex trading strategy because it is quite simple and has the potential to tell many important price information. The shorter the period, the more sensitive the indicator line to price movement. Like other MA types, EMA is a customizable indicator, meaning that traders can freely choose their periods. Compared to other strategies, it is relatively easy to learn and use, making it suitable for both beginners and professionals.īasically, Exponential Moving Average (EMA) is one of the most commonly used indicators in forex trading. If you're still unsure about which strategy suits you best, you might want to try the 200 EMA trading strategy. Many traders like to jump around while trying different strategies and end up quitting. On the other hand, the 200 EMA strategy is strictly used by long-term traders.How to use 200 EMA as a simple but powerful strategy? Despite its common setups, there are good trading opportunities to find if you can utilize 200 EMA properly.Īs a trader, selecting a suitable and effective trading strategy is definitely not the easiest task. The 50 EMA would commonly be used by traders who prefer a single strategy for both short and long-term predictions. Place a stop loss a few pips above the highest point of the entry candlestick, approximately between 15-20 pips.īoth the 50 EMA and 200 EMA strategies have their own purposes.Place a sell order a few pips below the lowest point of the entry candlestick, anywhere from 10-15 pips.The candlestick that is formed after the price breaks the 200 EMA point is your entry candlestick.Watch the market and wait for the price to cross the 200 EMA from above the line.You should also place a stop loss a few pips below the lowest point of the entry candlestick, approximately 15-20 pips.Place a buy order a few pips above the breakpoint of this candlestick, anywhere from 10-15 pips. ![]()
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