One of the most critical aspects for traders is knowing the
best moving average in their trading. This is preparation to conquer the market too. Moreover, you already know that trading is getting more rigid over time.
Without preparation and planning, trading is only a high-risk activity. Especially for novice traders, it's best to have a helpful strategy to help execute the plan and gain profits. This is the primary method for getting higher yields as well.
You can have a simple and professional method to be successful in trading at best forex broker. Making use of even simple and old trading tools is a great start. But here we will discuss 20 EMA Tools.
20 EMA or 20 Exponential Moving Average is a straightforward strategy, even for novice traders. The only tool needed is the 20 EMA, which can be used for any currency pair in any time frame, including markets high in volatility.
How Does the 20 Exponential Moving Average Strategy Work?
From this, we will analyze how the 20 EMA strategy works. This can be used for markets that have fast-moving prices. In a downtrend, the price is also expected to go down. But at another point, you can see the change in direction that occurred at the 20 EMA.
In other words, the 20 EMA is the best moving average because this strategy uses the bounce line for candlesticks. You only need to focus on a specific candlestick because the others will head back up and touch the EMA line.
This is a downtrend when the price is closing above the 20 EMA. Meanwhile, a downtrend occurs when the price closes below the 20 EMA. However, with 1-2 pips, you will avoid an uptrend market, and the candlestick signal for a sell trade is also getting more precise.
How to Easily Identify the Trend of Forex Trading with This Strategy?
And you are now starting to be interested in using this strategy for your market execution. But before starting, you should know how to identify this trend first. This cannot be done by random traders also without knowing the following ways of identification:
1. Identify the Major Trend First
To get to know the best moving average in the forex market, you must first start by identifying the significant trend. Ensure the price has been moving for several days with at least one higher low for an uptrend and a lower high for a downtrend.
2. Spotting the Entry Points
You are also expected to analyze various entry points in the
forex market. This is to identify resistance levels and starting points at market opening. If not, this can provide a considerable risk of losing assets.
3. Know Whether It is Ideal or Not
Also, know whether the best moving average is the ideal strategy for you to try. These considerations underlie how you recognize the trend and find out which way the market is moving. So what needs to be done is checking.
4. Don't be Afraid to Fail
Be bold if you fail; this is our input regarding this trading strategy. The 20 EMA is not free from flaws and also has the potential to fail. But this is a market risk, so you shouldn't be afraid if it doesn't work out later.
Market trends cannot be predicted clearly, so you need a broker with better analysis tools. This is the job of a didimax forex broker, a broker that is the best at the moment. With the circumstances in the forex market, Didimax could be the answer.
You always have the potential to fail when we talk about trading. On the other hand, the chances of success are no less remarkable, especially if you measure everything carefully. But, to find out, you need the best moving average first, which is the 20 EMA.