Andrew's Trading Channel
Andrew discusses how to determine whether markets are going up or down, emphasizing the importance of using exponential moving average lines. These lines will provide a clearer picture of the patterns and movements of the market, allowing for more informed trades. He demonstrates how to set up and use these indicators to help avoid making uninformed trades.
How to Determine Whether the Markets are Going Up or Down
Using Exponential Moving Average (EMA) Lines
By Andrew
Introduction
Are you a trading enthusiast who constantly seeks to learn new trading techniques, but still lose trades? You might be missing the general patterns of trading. Knowing whether the markets are going up or down is one of the fundamental aspects of trading. This article aims to guide you on how to determine whether the markets are going up or down using Exponential Moving Average (EMA) lines.
The Significance of Knowing Whether the Markets are Going Up or Down
Whether you make a call or sell trade or go short or long, you need to know where the markets are going. This helps you to make informed trading decisions to generate profits. However, determining whether the markets are going up or down can be challenging, given the constant changes in the market.
The Limitations of Most trading indicators
There are numerous trading indicators that one can use to determine whether the markets are going up or down. However, there is no Indicator that can give you a 100 percent accurate answer. The markets are constantly moving and changing; thus, there is always a possibility that markets going down can go up at any time.
The Value of Using EMA Lines
EMA lines are simple yet effective tools that you can use to determine whether the markets are going up or down. These lines can be added from any charting solution that you are using, and they analyze the market based on previous market data. Unlike most trading indicators, EMA lines provide a clear visualization of the market’s movement.
Step-by-Step Guide on How to Use EMA Lines
To use EMA lines, follow the following steps:
Step 1: Set Up the Indicators
Click on the indicators on the top and type in “EMA” in the search box. Select the indicator and click on it twice since we are using two of these lines.
Step 2: Edit the Indicators
Edit each indicator by clicking on the gear icon or settings. The first indicator should have a set of 365 and a blue style, while the second should have 180 and a red style.
Step 3: Interpret the Chart
When the blue line is above the red line, the markets are going down, and when the red line is above the blue line, the markets are going up.
Conclusion
Knowing whether the markets are going up or down is crucial in making profitable trades. EMA lines provide a clear view of the market movement and are easy to use. However, it is essential to note that the market is always changing, and you should use EMA lines in conjunction with other trading tools to make informed decisions.
