What is the EMA?
EMA stands for Exponential Moving Average. This is a moving average used to determine the intensity and reversal points.
EMA indicator overcomes the “delay” of SMA. Therefore, traders believe that EMA indicator is better than SMA indicator.
How to set up EMA indicator at Olymp Trade
At the Olymp Trade trading interface, go to the indicator tab and select EMA.
The standard setting Olymp Trade platform sets for you is 10. This is an indicator for traders who like short trade with trading platforms. You can increase it to 30 if your trading is the long trade (set your forecast time 5 minutes or more).
Olymp Trade trading rules with the EMA indicator
The most appropriate time to open an UP trade is when the price which is below the EMA goes up. If you use a Japanese candlestick chart, open a long trade when there is a green candle moving above the EMA line. Close the candlestick decisively firmly on this EMA line.
On the contrary, open a Down trade when the price from above falls down to this EMA line. A red candlestick falling down the EMA line shows a downward trend in the upcoming time.
Verify this by opening a DEMO trading account at Olymp Trade.