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Exponential Moving Average (EMA)

STMX TESTING OLD SUPPORT!The price on 16 march has experienced a pullback and formed a support zone between 4 and 5 cents. Following that the price has risen to around 9 cents and failed to break that level but it formed an upward trendline that was tested around 7 times. I believe that the price has decreased to test the previous support zone. This idea is backed by a possible formation of a channel where the price will bounce before rising again in addition to taking into consideration that the 50EMA will soon enter this support zone making it harder to break.
SLong
by rodrader
1
Calling GTN ReversalGTN is a broadcasting company that recently took a stake in a sports & gaming company, Envy Gaming. This fast growing sports & gaming company will propel Gray Televisions growth, making it a good long term hold given their current market position already (#1 ranked due to show holdings and licenses by market entities) - this one loves the 50EMA a lot, as long as it holds 18.9, doesn't break 18.4, expecting this to rally back up to the 20s - take profit at 20.4, 20.8 for a good 5:1 R/R
NYSE:GTNLong
by Samirp01
BA Correction!Hello Community! Before we begin HATE IT OR LOVE IT please support my idea with a thumbs up and a comment. It'll be greatly appreciated! When taking a look at BA we can see it trading in an ascending parallel channel. It has currently reached the top and is looking to aim lower to the next support which is the 55 EMA. If the 55 EMA fails we can expect it test the bottom of the channel before bouncing and moving higher. The RSI is showing over bought, and the Mac D is showing bearing signs. With the Quadruple Witching happening tomorrow it makes for a perfect storm to move lower with increased volatility but that's just my guess. This is not Financial advice. Safe Trading Calculate Your Risk/Reward & Collect! Simplicity Wins
NYSE:BAShort
by rnaofs
2
$BTC: 200 ema on the 4 hour = Potential repeat?I love the 4 hour chart. Last time bitcoin fought back above the 200 ema and then retested it and successfully closed above? We saw a pretty nice run. I get the sense that this $BTC pa is just some coiling of the spring, a consolidation of momentum as we load up for the next run. Obviously things can go south from here for sure. I wouldn't be surprised to see a second break below, and another "double bottom" style pattern form. But if this 200 holds, we might see some nice push to up around 70k.
COINBASE:BTCUSDLong
by its_maxbro
3
Ethereum make support above of EMA 200At the moment, Ethereum was show us a bullish candlestick that at the moment, it's bullish, the price it's still above of the EMA 200. It's very important for Ethereum, Well, that it's all my update that I bring you, becuase in Daily timeframe we would need to know this zone. www.tradingview.com As Ethereum make support above of the 0.382% of Fibonacci, the trend can to continue up as we see in this chart. So, as in Bitcoin too, I will going to update the Daily chart too in my post here to know the best information. At the moment, I re-open my long position in this par as we see a cheat in crytpocurrency. But, I know already that Etheruem going to up based in my experience and studies in trading. For that, the $1,400 USD level it's a support for Ethereum in the pull back what we see this ascendent triangle.
COINBASE:ETHUSDLong
by harisonhbn9718
1
EURUSD 1D MEAN REVERSION TRADING STRATEGYBest Mean Reversion Strategy: Before we get to that point, first and foremost, let’s see what tools we need to use for this strategy. The best mean reversion indicator that works 85% of the time is the RSI indicator. So, you will need the RSI oscillator on your charts. Now, there is one more important thing that needs to be done. The RSI settings must be changed from the default 14-period to 2-period RSI. So, we’re having not just any type of RSI, but a very fast RSI. Levels are 10 & 90. The other technical indicators we’re going to deploy on the charts are: 10-period simple moving average. 200-period moving average. Note* Another thing to keep in mind is the recommended time frame is the daily chart. Intraday charts won’t work because the fast-period RSI will generate a lot of false signals on lower time frames. Now, let’s see how we can combine the 3 indicators into a profitable mean reversion strategy. The first obvious question is when to buy and sell currency. To answer this question the mean reversion trading strategy needs to satisfy 3 triggers: The price needs to be above the 200-day EMA. This means that the overall price is in an uptrend so, we’re only going to look for buy signals in bull markets. Second, we look for the price to below the 10-day SMA, which shows a deviation from its mean. Last but not least, we look at the RSI to overshoot below 10, which signals that we’re in oversold territory. Note* For sell signals use the same trading rules but in reverse. Once all 3 conditions are satisfied we enter a trade at the open of the following day. Once we’re in a trade we also need, we also need to know when to exit the market. This is where the 10-period simple moving average comes into play again. What we’re looking for is for the price to reverse back to the 10-period SMA strategy. More often than not the price will overshoot to the upside and break above the 10-period SMA. So, to fully capitalize on the entire move we use multiple take profit targets: The first profit target is to cash half of the position once we touch the 10-period SMA. The second portion of your position is left until we break and close above the 10-period SMA. Based on our backtesting result, on average your trades should reach the second target within 1-3 days. The longer you keep your position open, the lower the chances of the trade to succeed. As a general rule, you should cash out of your entire position within the first 3 trading days. Now, we have left out for last the most important part, which is managing risk. When it comes to the protective stop loss we’re advising not to place a stop loss right away, but instead, use a time stop. Let me explain… Based on our backtesting results we have found that a lot of the times the market will do a false breakout below the previous day low (high) and hurt our position. So, to avoid this scenario we have found a great trick to move around it. Our rule is very simple: If by the first half of the day our position shows a loss, we close that trade and call it a day. This is a risky play but we have the edge on our side to play this kind of trick. After all, trading is a risky game and everyone needs to decide for themselves how to manage risk. Final Words – Best Mean Reversion Strategy In summary, the most alluring thing about mean reversion trading is the high win-loss ratio and the simplicity behind it. One thing to keep in mind is that the mean reversion strategy tends to perform poorly when the market is in a hard-mode trend. But that shouldn’t be much of a big deal since the market is ranging 75% of the time. The key takeaways from the mean reversion trading strategy are as follow: Mean reversion can be used with all asset classes (stocks, commodities, currencies or cryptocurrencies). Range trading and overbought/oversold signals work the best with this method. Adjust the RSI settings to a fast-period. You can generate quick profits – short holding time periods. A trading tip – use a time stop instead of a price stop. Thank you for reading! Mean Reversion Trading Strategy with a Sneaky Secret. In this guide, you’ll learn a mean reversion trading strategy with some trading secrets that will assist you to limit the downside. The first part of the guide will highlight what is mean reversion trading, while in the second part we’ll reveal the mean reversion strategy and how you can fine-tune it to fit your personality. If this is your first time on our website, our team at Trading Strategy Guides welcomes you. Make sure you hit the subscribe button, so you get your Free Trading Strategy every week directly into your email box. The mean reversion trading systems are more appealing to a lot of traders because it tends to have a higher win rate as opposed to the trend following strategies. Even when the markets are in well-established trends, mean reversion happens quite often. So, there are more opportunities to profit from mean reversion trading. Let’s kick the ball rolling and start with the basic by first explaining what is mean reversion in trading and then we’re going to reveal 5 trading principles that can be used with the mean reversion strategy. Table of Contents 1 What is Mean Reversion Trading? 2 How Mean Reversion Trading Works? 3 Why the Mean Reversion Strategy Works? 4 Mean Reversion Trading Strategy 5 Final Words – Best Mean Reversion Strategy What is Mean Reversion Trading? Put it simply; mean reversion trading assumes that over time the prices of any asset (stock, commodity, FX currency or cryptocurrency) in time will revert back to the mean or average price. In other words, reversion to the mean trading comes down to the old saying: “What goes up must come down.” The mean reversion theory is at the foundation of many trading strategies that involve buying and selling of those asset class prices that have deviated from their historical averages. The idea is that in the long-term prices will return back to their previous average prices and normal pattern. Example of mean reversion trading strategies includes: Reversals. Pullback trading. Retracement. Range trading system. Overbought and oversold strategies. Our best mean reversion strategy is to trade those price ranges that occur after a severe price markup or markdown. In this case, reversion to the mean implies trading around the middle of the range as our average price. In essence, mean reversion is playing around a central value be it the middle of the range, or a moving average, or however you wish to express it. The reversion to mean trading system tends to produce a higher win rate in those instances where we can notice extreme changes in the price. We can measure extreme price changes relative to the time frame used. Obviously, there is also a probability that the price will not revert back to its mean. This can indicate that there is a real shift in the market sentiment and we’re in a new paradigm. Now that we know what is mean reversion trading, let’s see how the mean reversion regression works. How Mean Reversion Trading Works? With mean reversion, we’re looking to trade against the heard. A lot of the times when you’re doing mean reversion trading, you’ll be quick in-and-out of a trade. That’s why day trading mean reversion strategy works better. There are other different ways to trade with the mean reversion strategy, including: Price stretch from a simple moving average strategy. A break outside the Bollinger Bands strategy and a return back to the mean. A test of support and resistance strategy while the price is consolidating. The linear regression is clearly slopping upwards and it’s acting as a magnet to the price. Each time the price deviates from the average price line it snaps back to it outlining the reversion to the mean concept. The main advantages of the mean reversion strategy include: Effective exit strategy – the take profit target is always the average price. High win rate – the shorter the mean reversion time frame used the higher the win rate. Good risk-adjusted returns. All trading strategies have their own pros and cons. The biggest flaw is that once you’re in a trade you’ll often see first a loss before you see a profit. The main components of the mean reversion strategy should include: 1. Entry signal after the price has moved away from its average price. You can simply calculate how far away percentage-wise are from the mean or use an ATR strategy multiple declines or simply use a volume oscillator to gauge oversold/overbought readings. 2. Exit signal gives you a way out once you get into a trade. 3. Broad market timing. Why the Mean Reversion Strategy Works? Mean reversion is a key element part of how all financial markets work. Mean reversion happens because the prices have a tendency to overshoot and undershoot their intrinsic value. These “price anomalies” happens because the impact of new information that hits the market takes time to be digested by the market. The market participants will take some time to understand the new information as the information is filtered slowly. Additionally, it takes time for the market to establish a fair value. Secondly, mean reversion trading also works because prices also move based on collective emotions. What this means for traders is that the price tends to overshoot to the downside a bit more than they overshoot to the upside. This is true because fear tends to be a bigger emotion than greed. Let’s put the puzzle pieces together and construct our reversion to the mean trading strategy.
Education
by Tradingstrategyguides
3
Price action below the 4hr H&s neckline target 22k if confirmed. The 21 daily ema is now current resistance overlapped with the inv 78.6 fib for double reinforced resistance. if this h&s triggers its breakdown here the measured move breakdown target is 22k What's more is the ever-important 21 weekly ema on the weekly timeframe(not shown here) is exactly overlapping the breakdown target for the h&s at 22k also overlapping the 50% fib this should create double reinforced support at this level All three combined create some extremely compelling bearish confluence...I think we head to 22k and then see a bounce from there based on the fact that we are overdue this bull run for a retest of the 21 weekly ema and the confluence of it overlapping the breakdown target and the 50% fibonacci retracement. Of course there is a chance this could be a fakeout if the inv 78.6(in teal) and the enckline of the h&s are flipped back to solid support. Must wait for confirmation here.
GEMINI:BTCUSDShort
by DrDovetail
1