can someone teach me how to USE EMA 200?

hello forum.

I have been hearing the importance of how to use ema200, but i don't no it use and significance.

I want professionals in the house to post and comment on this thread.

thanks

Im not a pro, but this is to simple....Ema 200 shows you an overal long term trend of pair...thats all.
Regards

Its a big line in the chart. ! . oops .. not a pro... still have my day job.

Unless you are a long term trader (really long term) a 200 EMA and even longer I have seen, is very inconsequential.

After all look at EURUSD where a top was made 7/15/08. It wasn't till 8/8/08 that price closed below the 200EMA and also on the same day that the EMA was lower than the previous's day reading. But that was after a drop of 1000+ pips from the high.

Then this past week was the first time it crossed back above the 200EMA by about 560 pips and then reversed back below on Friday by about 240 pips.

So how would someone trade that. If they expected the 200EMA to be resistance midweek (it was on Tuesday) but got burned Wednesday/Thursday only to see it retrace back on Friday.

I would like to know how a MA of any type or length, which always lags no matter how they are calculated, can show a trend better than the eye can see or a simple trendline can be drawn? The TL's on my attached chart are just randomly placed to roughly show the impulse wave from '06, the corrective wave from this past July and the most recent uptrend.

Note a few touches of price to 200EMA on the '06-'08 uptrend. But do traders really believe buyers even care whether an EMA of any length was nearby. It was a bull market (about 4400+ pips) for the euro whether or not a squiggly line was near or not.

As somebody has said, "Averages are for average traders".

Hey, we all started somewhere. Your Start Date is Now in History. You Decide. Are you going to assimilate or disseminate?


200 SMA on a:
5 Min = 16.6 Hours of bars.
10 Min = 33.3 Hours of bars.
30 Min = 100 Hours of bars.

Are these the bars you actually Want to measure? Just asking.

EMA 200 is relevant if you're trading daily charts. I agree that it is basically irrelevant if u are a 1minute Meastro, but if you are looking for an entry on the daily and 4 hr charts for big moves and I mean BIG then the price will bounce off the EMA 200 if it has broken the ema50 and is a good entry signal in combination with an engulfing or reversal candle and a CCI Confirmation.

On top of that. I don't know anyone that doesn't use Moving Averages as confirmation. I would say that your comment about averages being for average traders is based on complete ignorance.

including EMA 200 you can use if:
for example in an uptrend when the price make correction and cut our average,
and then goes up and candle closes above the 200 EMA can be a signal to buy.

Of course there are still plenty of guidelines to strengthen the signal.
But I do not recommend using the average as a signal at the intersection of each other. it is the wrong way ...

Above all the mean, of course, is to determine the direction of the trend.

regards
Gary

U can not trade 200 EMA.U must use other indicators as well.200 is just a filter

EMA200 is the most important indicator, in 1h and 4h, and day charts in particular. If I can have only one indi, I take an EMA200 and nothging else -- I've been quite successful with it actually.