From my experience with intra-day trading, nothing is confirmed until price has crossed the EMA 55 and made a pullback. This is where we see the start of trend movement. More so when the EMA 13 has crossed the EMA 55, but this is now shown as the coloured candle on the charts (Green/Grey/Orange) as Buy/Wait/Sell.tmostafa007 wrote: Wed Oct 16, 2024 9:44 am Hello friends,
I have a question, and I’m not sure if it’s correct or not. Is there a way to confirm the direction after the Big Semaphore (BigSema) arrow appears (either up or down)? For example, by using two big dots, two small dots, or four small dots, which are reflected in the triangle.![]()
Is there any way to confirm the direction after the Semaphore arrow appears by using, for example, two big dots + four small dots?![]()
I know that EMAs are important, but I'm trying to understand the market structure more based on the Semaarrow.
because if i did i think i can predict the direction correctly.
Also, how can I confirm by using a higher timeframe? I mean, if I’m trading on the 1-minute chart, what is the best higher timeframe to follow? and what you are looking for direction semaarrow , semadown , pink/blue dots ?
also, what is the best configuration for EMAs for 1 Min
thanks in advance![]()
EMA as a Dynamic Support/Resistance: The EMA 55 can act as a dynamic support or resistance level. When the price crosses above or below this line, it often signals a potential change in trend direction. The choice of 55 as a period might be due to it being part of the Fibonacci sequence, which some traders believe has significance in market movements, though its effectiveness can also be attributed simply to its popularity, making it a self-fulfilling prophecy.
Pullback Confirmation: The pullback is crucial for several reasons:
Confirmation of Trend: A pullback to the EMA and then a bounce can confirm that the trend has strength. If the price pulls back to the EMA, touches or comes close to it, and then moves away again, this suggests that the EMA is acting as support (in an uptrend) or resistance (in a downtrend).
Entry Points: This provides traders with an entry point. Buying at or near the EMA during a confirmed uptrend can be less risky than buying when the price is extended far above it.
Risk Management: It helps in setting stop-losses just below the EMA for long positions or above for short positions, as a failure to hold above/below the EMA might suggest a trend reversal or weakening.
Psychological and Practical Levels: The more traders watch and act on the same indicators, the more likely those indicators are to influence market behavior. Since EMA 55 is a commonly watched indicator, it gains significance through collective trader behavior.
Filtering Noise: Shorter EMAs react quickly to price changes, which can lead to false signals in volatile markets. The EMA 55 balances sensitivity with stability, filtering out some of the market 'noise' that shorter EMAs might catch.
Time Frame Consideration: In intra-day trading, the effectiveness of any moving average, including EMA 55, can depend heavily on the time frame you're observing. What works on a 5-minute chart might not be as effective on a 1-hour chart, so it's important to match the EMA period with your trading style and the volatility of the asset you're trading.
Xard777
Remember, while these patterns can provide a structured approach to trading, no indicator is foolproof. Market conditions, news events, and liquidity can all affect price movements independently of technical indicators. Therefore, combining this technique with other forms of analysis (like volume analysis, other indicators, or fundamental analysis), and maintaining good risk management practices, is advisable.