How to use EMA (Exponential Moving Average) for day trading?
EMA’s are used by traders to analyze the averages of the past cryptocurrency performance.
The most Commonly used EMA’s are 13 and 34 or 12 and 26th day EMA for short term analysis and 50 and 200th day EMA’s are used for long term analysis
We can use these EMA’s on any cryptocurrency exchanges by adding indicators on a certain cryptocurrency charts before buying or selling
I will show you an Example on KuCoin
This is an Example of TRX/USDT
Right click on the chart and click on add indicators and add two EMA lines edit it change the color both lines and give 13 and 34 as value for each line here you can use this for short term.
Here, I have added blue line indicates 13 and orange indicates 34th day, I have also added another indicator called volume which will be help-full too.
In the above picture we can see that whenever the blue line crosses the orange line and moves above the price raises, similarly whenever the blue line crosses the blue line and goes below then the price drops, we can use these two crossing points for initiating buy and sell orders on our crypto.
In the price above we can see the price going down after the blue line or the 13th day line moves below the 34th day line, and we can also see the spike in sell volume.
These EMA strategies can be used for day trading, but before using the EMA strategy we must ensure whether it follows the EMA lines or not by seeing its past history.
Remember, trading involves certain risks so if you can take risks you can got with this,