Swing EMA
What is Swing EMA?
- Swing EMA is an exponential moving average crossover-based indicator used for low-risk directional trading.
- it's used for different types of Ema 20,50,100 and 200, 3 of them are plotted on chat 20,100,200.
- 100 and 200 Ema is used for showing support and resistance and it contains highlights area between them and its change color according to market crossover condition.
- 20 moving average is used for knowing Market Behaviour and changing its color according to crossover conditions of 50 and 20 Ema.
How does it work?
- It contains 4 different types of moving averages 20,50,100, 200 out of 3 are plotted on the chart.
- 20 Ema is used for knowing current market behavior. Its changes its color based on the crossover of 50 Ema and 20 Ema, if 20 Ema is higher than 50 Ema then it changes its color to green, and its opposites are changed their color to red when 20 Ema is lower than 50 Ema.
- 100 and 200 Ema used as a support and resistance and is also contain highlighted areas between them its change their color based on the crossover if 100 Ema is higher than 200 Ema a then both of them are going to change color to Green and as an opposite, if 200 Ema is higher then 100 Ema is going to change its color to red.
So in simple word 100 and 200 Ema is used as support and resistance zone and 20 Ema is used to know current market behavior.
How to use it?
- It is very easy to understand by looking at the example I gave where are the two different types of phrases. phrase bull phrase and bear phrase so 100 and 200 Ema is used as a support and resistance and to tell you which phrase is currently on the market on example there is a bull phrase on the left side and bear phrase on the right side by using your technical analysis you can find out a really good spot to buy your stocks on a bull phrase and too short on the bear phrase. 20 Ema is used as a knowing the current market behavior it doesn't make any difference on buying or selling as much as 100 Ema and 200 Ema.
Tips
- Don't trade against the market.
- Try trade on trending stocks rather than sideways stock.
- The higher the area between 100 Ema and 200 Ema is the stronger the phrase.
- Do Backtesting before real trading.
- Enjoy Trading.