Today.. In this article. I am going to talk about one of the most popular trading indicators name EMA or you can even call it Exponential moving average.

EXPONENTIAL MOVING AVERAGE

  • The exponential moving average is one of the family members of the moving averages.
  • It is a technical indicator that tracks the price trends over a specific period of time.
  • Compared to the simple moving average, it gives more weightage to the recent price changes which is considered more accurate.
  •   The calculation of EMA and SMA is a bit the same. However, you need to apply a bit of mathematics to calculate the outcome. but the good news is that you don’t need to apply mathematics as the calculation work is done by IQ Option.
  • Using two EMAs will give you much better results. they ribbon around the price to create buy and sell opportunities.

HOW TO COMBINE TWO EMA IN IQ OPTION

  • Login to your IQ Option account.

  • Once you signed up, you will reach the IQ Option dashboard. Click on the indicator button. and search for moving average.

  • Now, set the time frame to 14 and set the type to EMA. You can also change the colour of the indicator and increase width of the line.

  • Next, you need to set one more EMA. Just like above change the period to 28 and set the type to EMA. Make sure to change the colour and thickness of the line for better results.

HOW TO TRADE WITH TWO EMA LINE AT IQ OPTION

Trading with the Exponential moving average isn’t quite difficult these two lines ribbons around the price that create buy and sell opportunities. You just need to focus on the intersection of the lines.

 BUY WITH GOLDEN CROSS

When line 14 intersects line 28 from the bottom and later on moves above the same. it is a signal of the bullish trend. You should watch a few candles if line 14 is still moving in an uptrend. this is a signal of a strong bullish trend and here we can place a buy trade.

SELL WITH DEATH CROSS

Similarly, when line 14 cuts line 28 from the top. and line 14 stay below the same is a signal of a bearish trend. You should wait for a few candles if line 14 is still below line 28 is a signal of the strong bearish trend and we can place a sell trade.

So, This is the end of this article. I hope you found this article helpful and you must have understood the concept of EMA properly.

This article was all about EMA strategy, EMA indicator, How to read EMA indicator & more

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