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What is EMA 34 89? Why mastering this indicator can help you achieve a higher win rate?
First, you need to know What is EMA? Master the magical EMA indicator in 5 minutes
In this article, I will show you a tip that I have been using since 2019 and it is still quite stable and effective, which is Cross EMA34 – EMA89.
Trading Method with EMA 34 – 89 Indicator: Cross EMA 34 – 89
Cross EMA 34 89 is divided into two types:
- Cross upward (EMA 34 crosses EMA 89 from below).
- Cross downward (EMA 34 crosses EMA 89 from above).
Cross upward (EMA 34 crosses EMA 89 from below)
When encountering a cross EMA from below, identify a short-term uptrend, the price will retrace to the cross area, at which point we will look for a Buy point to catch the upcoming short-term uptrend.
The moment we enter the order is the moment before the Cross, this is when the price will fluctuate strongly in the direction of pulling the two EMA lines closer together (preparing the premise for the cross rhythm)- 1: Strong price increase to pull the two EMA lines to tend to intersect.
- 2: Price adjustment/retracement (This is the time to determine the entry point for you).
Entry point before the Cross point appearsCross downward (EMA 34 crosses EMA 89 from above)
Similar to Cross upward but in the opposite direction.
How to set Stoploss – SL (Cut loss)
Stoploss is the nearest resistance/support areas in the trading frame where Cross appears. It can be determined by trendline or old peak/bottom price areas.
Stoploss point (SL)How to set Take Profit – TP (Take profit)
Depending on the resistance/support level in the trading frame or according to your expectations.
Some notes with Cross EMA 34 89
- This method is not a holy grail, it only has a win rate of 70% – 80%, there is still a failure rate, so good capital management is still needed.
- The application of cross EMA 34 – EMA 89 will be most effective when trading according to the trend, using along with trendlines/ support and resistance lines/ reversal candlestick patterns.
- Cross EMA 34 and EMA 89 can be applied to all frames (M, W, D, H4, H1, ……), but it is limited to small time frames (m10, m5, m3, m1) because it is easy to be deceived.
- EMA is also dynamic resistance and support that will always follow the price line. But basically, priority should still be given to resistance and support according to DOW theory.
=> EMA is not used to accurately catch the top or bottom. Essentially, EMA helps traders trade in the trend direction.
Illustration of practical application
Encountering cross EMA going up CTK frame m15 and the result.
Before and after entering the order
Image result when applying EMA to tradingEncountering cross EMA going down frame m15 BTC and the result of making money.
Image result when applying EMA to trading
Image result when applying EMA to tradingGuide to setting up EMA 34 89 on Tradingview
First, you access the Tradingview website here.
You perform similarly to the image below to get the EMA indicator.
Tradingview interfaceNext, you need to adjust EMA to EMA 34 and EMA 89, or according to how you want to use it. Next, you need to adjust EMA to EMA 34 and EMA 89, or according to how you want to use it. Fill in the information similarly to the image below, note to set the number to 34!
Tradingview interfaceThat’s how you set up EMA34, similarly, you perform to set up EMA 89!
You can watch our detailed video guide on setting up and using the ema 34 89 indicator:
Summary of trading method with EMA 34 89 indicator
Through the above article, I have introduced and guided everyone on how to use the cross EMA 34 89 method. Note that in trading, there is no method or analysis that is a holy grail, no method has a 100% win rate. Only methods that bring a higher win rate, combined with good capital management, will help you survive and make money in this market.
Hope it will help you in making money in this challenging crypto market. Follow more technical analysis articles to fully equip yourself with technical analysis knowledge!
If you participate in crypto, you should prepare at least 3 accounts on 3 different exchanges because many coins, tokens have not yet been listed on Binance. You should consider 3 exchanges: Bybit, Bitget, OKX.
