How can exponential moving average be used to identify a trend in forex?
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Tagged with: exponential • exponential moving average • Forex Questions • trend
Filed under: Forex signals
You look at exponential moving averages across multiple timeframes to see how the smaller timeframes build the larger timeframes or if any larger trends are already in place. I can offer you a set of free trend indicators using EMAs here including setup instructions and a slideshow of how they should look.
http://www.forexearlywarning.com/charts.cfm
Also check this blog link for two articles on multiple timeframe analysis of trends, look closely and click and you will find both of them.
http://theforexheatmap.blogspot.com/2009/09/forex-educational-post-6.html
This should adequately explain everything you need,
Good Trading
Mark Mc Donnell
http://www.forexearlywarning.com/
Yahoo Answers Level 3 Responder
Then you should look at my website, i teach about exponential moving average too.
14 years of Full time forex trading experience
Asia Forex Mentor
Ezekiel Chew
http://www.asiaforexmentor.com
Generally exponential moving averages also call EMA are used to identify the current trend. Many traders out there use the 200EMA to gauge whether the trend in a currency pair is up or down.As an example at present the EUR/USD is trading below its 200 EMA on the daily chart meaning that the trend is down.
All the best,
Amit