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EMA (Exponential Moving Average) is one of the parts of the moving average and is one of the oldest indicators used by traders to identify the current trend and strength of the security. The EMA is an average price calculation over a certain period of time that applies more weight on the most current closing price causing it to react faster to price change.
The calculation of EMA is a bit tricky. unlike SMA, where you just needed to add the closing prices and divide it by a number of periods. In EMA, you need to apply bit mathematics. However, If you don’t like maths. don’t worry the calculation of EMA is already done in Olymp Trade software and you just need to trade via signals that the indicator generates.
Setup EMA 15 and EMA 35 at Olymp Trade
Setting up the indicator is quite easy. You just need to log in to your Olymp Trade account and make sure your chart is set to candlestick and set the time frame to 15 minutes.
Secondly, click on the indicator button and search for the name EMA. click twice on the name.
Lastly, edit the indicator and change the colour of the line according to your convenience and change the timeframe of the indicator to EMA 15 and EMA 35.
Place buy trade at EMA 15 domination
When the EMA 15 is below the EMA 35 and later they intersect each other and SMA 15 moves above the SMA 35 for a long duration It signals a bullish trend. It is to be noted that If there strong gap between the two EMAs it signals a strong bullish trend and here we need to place a bullish trend.
Place sell trade at EMA 35 domination
Similarly, When the EMA 15 intersects the EMA 35 from the top and later stays below the EMA 35. It signals a bearish trend similarly, If there is a big gap between the two EMA it signals a strong bearish trend and here we can place a sell trade.
Trading with the EMA indicator is easy. You just need to focus on the intersection points. The best thing you can do is practice How to read ema indicator at the Olymp Trade platform and keep the track record of how many trades you actually made correct and check how this indicator behaves for you. I wish you the very best of luck!!