A 20 exponential moving average (EMA) is a popular moving average to use to identify trends.

Pros:

• Very simple
• It is dynamic, can adjust to market volatility.

Cons:

• Lag.

Determine a trend by using a moving average crossover strategy.

e.g. 50 and 200 moving averages, which are commonly used settings.

e.g. 2 and 80.

If there is an uptrend, it’s better to make a Buy trade when the price hits a moving average from above and keeps on moving towards the trend.

If there is a downtrend, it’s better to make a Sell trade when the price hits a moving average from below and keeps on moving towards the trend.