Triple MA

Notes:

These indicators and concepts are specifically designed for TradingView.com

Overview

The MA strategy using the 8, 13, and 21 exponential moving averages (EMA) is a popular trading strategy used by many traders. It involves using three EMAs with different time periods to identify trends in the market. The 8 EMA is the shortest time period EMA and is used to provide a signal for a potential trend change. The 13 EMA is used to confirm the trend, and the 21 EMA is used to identify the long-term trend.

How to Trade

When using the MA strategy, traders will typically look for two things:

1. The crossover of the shorter-term EMAs above or below the longer-term EMA.
2. The position of price in relation to the EMAs.

If the shorter-term EMAs cross above the longer-term EMA, this is seen as a bullish signal, indicating that the trend is likely to continue in an upward direction. If the shorter-term EMAs cross below the longer-term EMA, this is seen as a bearish signal, indicating that the trend is likely to continue in a downward direction. Traders will also look for the price to be above or below the EMAs to confirm the trend. If the price is above the EMAs, this is seen as a bullish signal, while if the price is below the EMAs, this is seen as a bearish signal. Traders will typically use the MA strategy to identify potential entry and exit points for trades. For example, if the shorter-term EMAs cross above the longer-term EMA, a trader may consider entering a long position. Conversely, if the shorter-term EMAs cross below the longer-term EMA, a trader may consider entering a short position.

How to Calculate

To calculate the EMAs, you can use the following formula:

EMA = (Close - EMA(previous day)) x multiplier + EMA(previous day)

Where:

• Close: The closing price of the asset for the current period
• EMA(previous day): The EMA for the previous day
• multiplier: The smoothing factor used to give more weight to recent price data. The multiplier is calculated using the formula: 2 / (n + 1), where n is the number of time periods used for the EMA calculation.