|EMA - 1|
EMA Trend Indicator is two exponential moving averages, a 7 and a 13. The
red line is the 7 moving average; the blue line is the 13 moving average.
When the red EMA is above the blue and the difference between the two is
expanding, the trend is strong up. When the red EMA is below the blue EMA,
and the difference between the two is expanding, the trend is strong down.
The weekly chart sets the trend for the daily chart, and by plotting the weekly EMA on the daily chart, the trend can be easily seen and high probability trades in the direction of the trend can be developed. Let's examine the EMA Trend Indicator in each of the five panels on a daily chart.
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