EMA, The correct way of usage - Part Three - minor structure

5 ngày trước

For trend traders, analyzing the short and long-term trend direction is crucial. By usage of 20EMA & 13EMA, we can understand short-term trend direction and power. In future articles, we will look at Major Structure (long-term trend analyses).

Keynotes:
1. When 20 is below 13 it means we are in an uptrend, and a Downtrend is when 20 is above 13.
2. EMAs should have a slope. If just one of them is flat, or both are sloped toward each other, or the price crosses and closes both of them, we are in the minor range. the possibility of a third one happening could be predicted by identifying an MC in the past (please refer to the MC article).
4. We look at the distance between these two EMAs as a zone. So we don't expect the price to close exactly on any of them, to analyze for a probable pullback (Please refer to Part One and Two).

Watch 4H:
- #1 Is where the price crosses and closes both. we are in a minor range. Then, the continuation of shaping green candles and then the cross of EMAs, means we are in a minor uptrend.
- #2 a flat 13 shows a slight range, which then again turns into an uptrend. Although we have predicted it before by drawing MC boxes.
- #3 shows 13 is toward 20. Then we are in a minor range. This is followed by price crossing and closing both in #4. Again it has been predicted by MC box to happen.
- Candle #5 is normal. Because we are in a range and in here anything can happen. But when the price couldn't cross and close both in #6 and the continuation of the downtrend and pullbacks in #7 & #8, it shows we are in a minor downtrend now. So, we are not going to trade upward until it reverses.