Reversal Trading

How To Use The 50 EMA

We use the 50 EMA for trend Trading and Reversal Trading.

              1.Trend Trading and 

              2.Reversal Trading 

Reversal Trading

You would have established that this is a moving uptrend through higher highs and higher lows.

Trend line break and break below the 50 EMA shows bearish price action and signal a possible trend change.

Price made the lower low which is another signal of bearish price action and a trend change=want to trade with the fresh downtrend. 

#Key resistance level that acted as both support and resistance in the past.

#Identified axis point or area confluence.

#You were looking to see if there would be a reaction to your axis point meaning price action occurring or forming.

#Break of the Tom Demark Trend Line.


Finally from lower timeframe taken sell entry by using multi time frame windows

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