Using Exponential Moving Average (EMA) to Pick Trends in Olymp Trade

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

Exponential Moving Average, also EMA is a trend analysis tool that works with the same principles as SMA. Calculations for both Exponential Moving Average and the Simple Moving Average use the same formulas.

However, there is more to EMA than SMA (Simple Moving Average).

EMA put more emphasis on the most recent periods/prices.

And this makes it a better indicator to filter unnecessary spikes because it gives you accurate prices and trends in real-time.

Check the example below.

Exponential moving average

Notice anything?

The EMA line is close to the price than the SMA is.

You know what that means?

You can make accurate predictions with SMA than you will with SMA.

How to set the Exponential Moving Average line in Olymp Trade.

Step 1.

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

Login to your Olymp Trade account. Or register if you don’t already have an account.

Register here

Step 2.

Find the indicator button in your chart .

Looks like this: –

Where to find indicators in Olymp Trade

Step 3.

Now click on EMA.

How to apply the EMA

Step 4.

This is the EMA.

EMA line

How to Read EMA signals in Olymp Trade.

It is recommended that when you set the this line in Olymp Trade, you leave it to its standard settings.

You can however change the color and thickness of your lines as you wish.

The basic principle of trading with this indicator is to trade on the direction of a trend.

To use this indicator in opening profitable trades, try to make a forecast when you notice a reversal in the asset price.

In practice, you will be looking for anything that looks like this to open your trade upwards.

Ema entry levels

Or a signal like this for a downward trend.

EMA signals


*Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.
******

. olymp tradeTry Trading | Register demo account

Kenn Omollo is an investment writer and a business management consultant at Joon Online Limited. Reach him at - kenn@joon.co.ke

Tagged With :

Comment on this post