For more on the 10 EMA trading strategy, please read on.
10-Day EMA: How to Use It in Your Trading Strategy
The 10 ema strategy is the simplest trading method anyone can use to make some profits. With this strategy, we are looking for a bullish candle to close below the 10 ema or a bearish candle to close above it. Once we spot them, then we can ride the change in trend.
Remember, it works perfectly with a short-term strategy. When the bearish candle closes below the 10 ema, then the market is about to start moving upwards and vice versa.
How can the 10-day EMA improve your trading results?
The 10 EMA is an exceptional moving average that uses recent information to remain in the right trend. Basically, it’s the first line to be broken before the market’s trend can reverse in the opposite direction.
Plus, the 5 ema 10 ema strategy can help you determine when to enter or exit a position.
The Benefits of Using the 10-Day EMA in Your Trading Strategy
The 10 EMA helps traders easily spot a change in the market’s trend. In fact, it’s the best option for spotting a shift in trend in the short-time frames of any financial securities. Therefore, it can help traders quickly generate sell-and-buy signals.
Common Strategies for Using the 10-Day EMA in Trading
After spotting a reversal, you can try and cover the entire bearish candle that’s above the 10 EMA. But if you’re unsure, you can wait for another bearish candle to close below the 10 EMA. And to limit your potential losses, you can place the stop loss right below or above the entry point. To make this strategy even easier, get our EMA CLoud HERE
Tips and Tricks for the 10-Day Exponentail Moving Average
Like with most strategies, you have to limit your trade’s size based on risk tolerance and account balance. Diversifying the portfolio can come in handy, especially since when one trader underperforms, the other profitable one can cover the losses.