4:54 AM
AGHA
Forex Trading Tips
part 8
Have a good experience with the latest NFP data release? Yupp, it's the end of July. So, prepare yourself to keep up to date with the NFP data release every first Friday of the month. There are so many websites provoding the NFP data that you can learn it to gain the next profit.
What I want to explain here is about Exponential Moving Average (EMA). Using EMA gives us more detailed data than using Simple Moving Average (SMA). Well, Moving Average is one of the most popular indicator used by traders. The point is, Moving Average displays the mean of a pair's movement in a certain period.
EMA consists of several numbers such as EMA-10, EMA-20, or even EMA-100. It doesn't matter if you don't know what the number means. I'd like to emphasize that the combination between EMA-10 and EMA-20 can give us a good conclusion. When EMA-10 moves beneath the EMA-20, and the 10 crosses the 20 above, then it indicates the price of a pairs is moving up. For example, look at the picture below!
The pair of GBP/USD (June 6th-8th 2013) was moving up so high. As we knew before, EMA-10 rose, crossing up the EMA-20 from below.
