EMA

What is an EMA?

An Exponential Moving Average gives more weight to recent prices compared to a Simple Moving Average (SMA). This makes it react faster to recent price changes, which is why most day traders prefer it.

Popular EMAs for day trading

• 9 EMA: ultra short-term, used for scalping entries
• 20 EMA: the go-to intraday trend filter
• 50 EMA: medium-term trend on daily charts

EMA trading strategies

• EMA crossover: 9 EMA crossing above 20 EMA = bullish signal
• EMA as dynamic support: buy pullbacks to the 9 or 20 EMA in an uptrend
• Stacked EMAs: when 9 > 20 > 50 EMA, the trend is strongly bullish