Hello traders 🐺 .
this is an educational idea and it's about the EMA Ribbon .
In this idea I want to talk about how to using EMA Ribbon in trading so make sure to read this idea until to the end if you are one of the Moving averages fans .
I like to start with an example of trading by using the EMA Ribbon , then I explain more about the EMA Ribbon and how it's work :
in the chart above we have 3 different examples of trading by using the EMA Ribbon ; as you can see in the chart above , we have 3 different pattern and the last one which is the symmetrical triangle is actually the current pattern of the BTC and I want to ask you about your prediction for it so leaves your comments below this idea and share your view about the BTC , after learning of how we can trade or in the other words how we can use the EMA Ribbon in our trading .
let's start with the ( first example ) :
my first example is rising wedge pattern , I try to cover all 3 types of the market conditions in this idea , because it's important to learn to trade in the any direction ; the first example is a bearish pattern :
As you can see in the chart above , BTC price after creating the rising wedge pattern started a very long down trend , by how we can trade it ?
if you look at the chart you will notify that the every line of the EMA Ribbon acts as a support or a resistance and the more deeps price can penetrate to the Ribbon , the chance of the reversal is higher .
For example , look at the rising wedge , during the pattern when the EMA Ribbon was in the bullish mode or in the other word , when short term EMA is above the long term EMA , when price finally success to penetrate to the last line of the EMAs which is the long term EMA ; price was faced to the more stronger support and this is shows us that if price can break below the all of the EMAs , there is strong chance for the changing the trend .
but finally when price break below the Ribbon , BTC was started a very long term bear trend , if you are a trader you must know that this bearish pattern after the very long bullish trend could indicate the bear market signs , and if you want to use EMA Ribbon for trading this is good chance , so let's see how we can use it ?
first of all when price break below the EMA Ribbon you must wait for the confirmation signs , this is means that you must wait for the EMA Ribbon to flip from bullish to the bearish mode which means that the short term EMAs goes below the long term EMAs , and after the retest of the Ribbon you can say that , thing are looking bearish from the EMA Ribbon sight ; and you can set your short trade based on your trading strategy .
but what's the problem of the EMA Ribbon ?
let's talk about the EMA Ribbons problem after checking all of the examples , until that please think about it and imagine how we can fix this problem if you find out the problem , if you can't , wait for the end of this idea and also don't forgot to support me with your likes and comments .
let's combine the example 2 and 3 together for better understanding :
as you might know , the moving averages are trend chaser indicator which means that they are work perfectly when market have a specific trend , for example in the chart above when BTC created a falling wedge pattern and break above the EMA Ribbon and retest it as a new support start a bullish trend , and as you can see when market started to retracement , BTC created a bull flag pattern and after the break out BTC continue the bullish trend .
in the bull flag , you can see that price break below the EMA Ribbon and also retest it as a resistance , but price can't continue the bearish trend ; so why this happen ?
did you remember that in the example one , I asked you about the EMA Ribbon , could you find the problem yet or not ? if you can't find it wait for the end 🙄🤷♀️ .
now we arrive to the last example which is the symmetrical triangle , but I gonna talk about it in the next idea because this is an educational idea and not for the analysis purpose , so make sure to follow me to find out what gonna happen for the BTC in the next coming weeks .
now it's time to show you the EMA Ribbons advantages and problem in one clear picture :
Did you remember that in the example 3 (bull flag) I said that the EMA Ribbon flipped to the bearish and also the price retest it as a resistance but price didn't break below again and after that BTC was breaked to the upside , this is what I mention the reason in the problem number 3 :
3_Moving average ribbons are best used in conjunction with other forms of analysis, such as price action, other technical indicators, and fundamental analysis for longer-term traders.
you must know that it's better to use EMA Ribbon in conjunction with other indicators for example , personally like to use it in conjunction by the RSI and TSI and also the price actions .
in the example number 3 , the overall trend is still bullish and price is above the support structure and also it's on the bullish pattern , so there is strong chance for goes above the Ribbon again .
now it's seems to we reach to the end of the idea and I must appreciate you my friends to read my idea , don't forgot to leaves your idea about this symmetrical triangle and help me with your likes and comments ; thank you for reading my idea .
this is an educational idea and it's about the EMA Ribbon .
In this idea I want to talk about how to using EMA Ribbon in trading so make sure to read this idea until to the end if you are one of the Moving averages fans .
I like to start with an example of trading by using the EMA Ribbon , then I explain more about the EMA Ribbon and how it's work :
in the chart above we have 3 different examples of trading by using the EMA Ribbon ; as you can see in the chart above , we have 3 different pattern and the last one which is the symmetrical triangle is actually the current pattern of the BTC and I want to ask you about your prediction for it so leaves your comments below this idea and share your view about the BTC , after learning of how we can trade or in the other words how we can use the EMA Ribbon in our trading .
let's start with the ( first example ) :
my first example is rising wedge pattern , I try to cover all 3 types of the market conditions in this idea , because it's important to learn to trade in the any direction ; the first example is a bearish pattern :
As you can see in the chart above , BTC price after creating the rising wedge pattern started a very long down trend , by how we can trade it ?
if you look at the chart you will notify that the every line of the EMA Ribbon acts as a support or a resistance and the more deeps price can penetrate to the Ribbon , the chance of the reversal is higher .
For example , look at the rising wedge , during the pattern when the EMA Ribbon was in the bullish mode or in the other word , when short term EMA is above the long term EMA , when price finally success to penetrate to the last line of the EMAs which is the long term EMA ; price was faced to the more stronger support and this is shows us that if price can break below the all of the EMAs , there is strong chance for the changing the trend .
but finally when price break below the Ribbon , BTC was started a very long term bear trend , if you are a trader you must know that this bearish pattern after the very long bullish trend could indicate the bear market signs , and if you want to use EMA Ribbon for trading this is good chance , so let's see how we can use it ?
first of all when price break below the EMA Ribbon you must wait for the confirmation signs , this is means that you must wait for the EMA Ribbon to flip from bullish to the bearish mode which means that the short term EMAs goes below the long term EMAs , and after the retest of the Ribbon you can say that , thing are looking bearish from the EMA Ribbon sight ; and you can set your short trade based on your trading strategy .
but what's the problem of the EMA Ribbon ?
let's talk about the EMA Ribbons problem after checking all of the examples , until that please think about it and imagine how we can fix this problem if you find out the problem , if you can't , wait for the end of this idea and also don't forgot to support me with your likes and comments .
let's combine the example 2 and 3 together for better understanding :
as you might know , the moving averages are trend chaser indicator which means that they are work perfectly when market have a specific trend , for example in the chart above when BTC created a falling wedge pattern and break above the EMA Ribbon and retest it as a new support start a bullish trend , and as you can see when market started to retracement , BTC created a bull flag pattern and after the break out BTC continue the bullish trend .
in the bull flag , you can see that price break below the EMA Ribbon and also retest it as a resistance , but price can't continue the bearish trend ; so why this happen ?
did you remember that in the example one , I asked you about the EMA Ribbon , could you find the problem yet or not ? if you can't find it wait for the end 🙄🤷♀️ .
now we arrive to the last example which is the symmetrical triangle , but I gonna talk about it in the next idea because this is an educational idea and not for the analysis purpose , so make sure to follow me to find out what gonna happen for the BTC in the next coming weeks .
now it's time to show you the EMA Ribbons advantages and problem in one clear picture :
Did you remember that in the example 3 (bull flag) I said that the EMA Ribbon flipped to the bearish and also the price retest it as a resistance but price didn't break below again and after that BTC was breaked to the upside , this is what I mention the reason in the problem number 3 :
3_Moving average ribbons are best used in conjunction with other forms of analysis, such as price action, other technical indicators, and fundamental analysis for longer-term traders.
you must know that it's better to use EMA Ribbon in conjunction with other indicators for example , personally like to use it in conjunction by the RSI and TSI and also the price actions .
in the example number 3 , the overall trend is still bullish and price is above the support structure and also it's on the bullish pattern , so there is strong chance for goes above the Ribbon again .
now it's seems to we reach to the end of the idea and I must appreciate you my friends to read my idea , don't forgot to leaves your idea about this symmetrical triangle and help me with your likes and comments ; thank you for reading my idea .
