## EMA designation on the chart
The indicator uses the most popular moving averages - EMAs with periods **20, 50, 100 and 200:**
* **Color** **lines** automatically changes at the moment the global trend is broken - this is needed to quickly understand market sentiment
* **Line thickness ----** and the fill color indicate the period (20 - the thinnest and brightest, 200 - the thickest and dullest...) - this is needed to quickly understand which moving average is which and not get confused by different colors
* The direction and position of the lines help determine trend and sideways movement
{% tabs %}
{% tab title="Strong upward " %}
**Green EMA lines** are arranged in a fan in order, directed upwards - this indicates a strong bullish trend.
You can consider long trades when the price touches the EMA 20 or 50 - often the price bounces off the EMAs as support.
{% endtab %}
{% tab title="Weak upward" %}
**Green EMA lines** intersect each other but are directed upwards - this indicates a bullish trend with strong corrections.
You can consider long trades when the price touches the EMA 200 - this is a strong level from which the price often bounces as from support.
{% endtab %}
{% tab title="Strong downward" %}
**Red EMA lines** are arranged in a fan in order, directed downwards - this indicates a strong bearish trend.
You can consider short trades when the price touches the EMA 20 or 50 - often the price bounces off the EMAs as resistance.
{% endtab %}
{% tab title="Weak downward" %}
**Red EMA lines** intersect each other but are directed downwards - this indicates a bearish trend with strong corrections.
You can consider short trades when the price touches the EMA 200 - this is a strong level from which the price often bounces as from resistance.
{% endtab %}
{% tab title="Sideways" %}
If **EMA lines are grouped**, often cross each other and change color - this indicates sideways movement and the absence of a clear trend.
In this case it is better to trade bounces from the nearest support and resistance levels that "squeeze" the price from above and below.
{% endtab %}
{% endtabs %}
## Application of EMA in trading
EMA lines often act as trend levels from which the price can bounce:
* In a trend, the price most often bounces off **EMA 20 and 50** - at this moment you can consider opening a trade in the direction of the trend
* **EMA 200** plays the role of a key support or resistance level for long-term moves - when the price approaches the 200 line a bounce can be expected
* Use the direction of the EMAs to filter false signals against the trend
If the EMA lines are grouped, often cross each other and change color - this indicates **sideways movement** and the absence of a clear trend - in this case it is better to trade bounces from the nearest support and resistance levels that "squeeze" the range from above and below.
{% hint style="success" %}
First of all, try the simplest [trading strategy with EMAs](/faq-en/simple-strategies.md#strategiya-torgovlya-po-skolzyashim) from the indicator developer
{% endhint %}
{% tabs %}
{% tab title="Bounce off EMA 20 to the long side" %}
When a **strong bullish trend**, the first upward bounces often occur from the EMA 20 or EMA 50 without deep declines, barely touching the moving averages.
{% endtab %}
{% tab title="Bounce off EMA 20 to the short side" %}
When a **strong bearish trend**, the first downward bounces often occur from the EMA 20 or EMA 50 without deep pulls, barely touching the moving averages.
{% endtab %}
{% tab title="Bounce off EMA 200 to the long side" %}
**Bounce off EMA 200 upwards** is often accompanied by elements of a false breakout - a sharp acceleration before the breakout and a rapid return of the price back past the level, candles may have large wicks.
Considering this, it is better to open the position after confirmations of a price reversal appear on the lower indicator.
{% endtab %}
{% tab title="Bounce off EMA 200 to the short side" %}
**Bounce off EMA 200 downwards** is often accompanied by elements of a false breakout - a sharp acceleration before the breakout and a rapid return of the price back past the level, candles may have large wicks.
Considering this, it is better to open the position after confirmations of a price reversal appear on the lower indicator.
{% endtab %}
{% endtabs %}
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