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How Top Traders Predict Price Movements with EMA Indicator

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SAHI

10 months ago

Ever wondered how top traders predict price movements with accuracy? Let us spill the secret for you—the EMA indicator!


Exponential Moving Average (EMA) is an indicator that gives more weight to the most recent candles, unlike the Simple Moving Average (SMA) which gives equal importance to all candles.

Consider EMA7 and EMA21:

  • EMA21: The slow-moving average of the most recent candles from the last 21 days.

  • EMA7: The fast-moving average that reflects a shorter and more recent time period.

  • Bullish Signal: When EMA7 crosses above EMA21 from below.

  • Bearish Signal: When EMA7 crosses below EMA21 from above.


Traders love EMAs because they’re like cheat codes for spotting trends:

  • For short-term plays, the 9-day and 21-day EMAs keep you ahead of quick moves.

  • The 50-day EMA smooths out the medium-term noise, making it easier to spot trends.


See? This is how simple it was. Use the EMA indicator along with other tools on Sahi to hit that perfect trade. 🎯✨

The content provided is for educational purposes only and does not constitute financial advice. For full details, refer to the disclaimer document.

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