The Moving Average rule compares the current price to a single EMA line.
For the indicator formula, see EMA — Formula.
Signals
| Condition | Signal |
|---|---|
| Price > EMA | Buy |
| Price < EMA | Sell |
Default parameters
| Parameter | Default |
|---|---|
| period | 20 (EMA length) |
Where to use it
Entry, increase, reversal, exit, and directional filters. Trend-classified rule.
Tips
- Shorter periods react faster but add noise.
- Combine with Price Distance if you want entries only after price stretches away from the MA.
Example
Period 20 on ETH/USDT 4h. Average entry context: EMA(20) = $3,200, close = $3,260 → buy. Next day close = $3,150 → sell. Pair with ADX filter so you only buy when price is above the MA and trend strength confirms.