200 ema forex system
In order to do that, there is one very important thing we must know about the market. We want to know is what the trend is. Remember that there will be a different trend on each time frame and it is perfectly acceptable to have a downtrend on a 4 hour chart and an 200 ema forex system on the daily chart.
In order to objectively determine the trend on the time frame of our choice, we are going to use the exponential moving average indicator that every charting platform will have. Why the 200 and not another one like the 50 EMA or the 20 EMA? Because 200 EMA is one very popular Forex indicator used by lots of traders and is used to determine the main underlying trend regardless of any corrective move in the price action. When price is above the 200 ema, that’s an uptrend.