If the 9 EMA line crosses over the 21 EMA line but is still above the 55 EMA, that means it is an uptrend and a good long opportunity. 9 EMA, which acts as the shorter-term trend indicator.

Final Thoughts on the 3 EMA Scalping Strategy.

Understanding the Three Moving Averages.

Without further ado, let's find out how this strategy works in the explanation below. The shorter-term trend can confirm the longer-term moving average and show a divergence. The main benefit of using this strategy is that it can show whether the shorter-term trend is going in a favorable direction. The idea is that by using three moving averages at once, you will be able to see the current direction of price on the chart as well as determine stop losses, trailing stops, and profit targets for further safety.

55 EMA as the long-term trend indicator.

21 EMA as the medium-term trend indicator.

9 EMA as the short-term trend indicator.

In this article, we will be using the following three moving averages to identify signals on the chart: Despite its lagging nature, EMA can help traders read the market condition and build the basis of their trading strategy.

But what if we use 3 EMA lines at the same time? Does it stay true for easy trading?Įxponential Moving Average (EMA) is one of the most popular technical indicators used by forex traders worldwide. Many traders like to use moving average to trade because of its simplicity and ease of use.

21 ema stock