To understand the pattern of any coin, an indicator plays a significant role. If you gain the right knowledge of using the correct indicator, it can certainly assist you with 50% of your trade.
Whether indicators work effectively or not is a matter of debate among traders. Many traders say that no indicator is reliable for making good trades, while many others rely heavily on indicators.
If I share my perspective, I would say that indicators play a major role in trading and understanding patterns.
Today, I will tell you about the EMA (Exponential Moving Average) indicator, which is not necessarily useful for making trades but is very helpful in understanding patterns.
Remember, the trend is always a trader’s best friend. If you understand the trend, every trade of yours will be successful. This means that if you understand the EMA indicator, your trade will become 100% accurate.
The EMA indicator works as a line that sometimes moves above the candles and sometimes below them. This line informs you about the trend.
If the candles move below the line, it indicates a bearish market. Similarly, if the candles move above the line, it indicates a bullish market.
Sometimes, the candles reject this line, which signifies the continuation of the trend. Also, note that this indicator works better on larger time frames.
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