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5 EMA Myth or Truth

Many people are familiar with the well-known 5 EMA (Exponential Moving Average) strategy

Lets Decode

The 5 EMA strategy is all about something called 'mean reversion.' This means that it's based on the idea that, over time, prices of things like stocks and currencies tend to go back to their typical or average levels.

How to trade on 5 EMA.

Observe the trend of the market. Identify if the market is moving buying/selling/sideways

Wait for the candle to move away the 5 EMA which will be also called alert candle.

Mark the high and low of the alert candle and trade on the break out or break down.

Trail as long as there is no candle moving away from the 5 EMA in the opposite direction

Note: Wait for a proper candle to close below or above the candle to get confirmation.

Again, Patience is the key to trade here.

Illustration and detailed explanation on the chart attached.