Forex Family How to use EMA’s as confluence with Price Action Edition 2

1. Notice the structure and momentum
2. Break and retest of zone 
3. Notice the spike to the same zone then continues with momentum most likely a stop hunt 
4. Go with the obvious momentum present in this example.

This is an example of why or how you can predict a fakeout cross Firstly during this time period (look at the date of the PDF before you DM me). During this time period UJ was hugely bearish. So this cross would be counter trend (Even if it wasn’t look at the spacing and confirms There isn’t any so it’s a bad cross overall) Looking at the 200 EMA and general price action we can see the bearish structure. Look at how it breaks the zone. Retests and continues down. (Look at that cross at the bottom right that’s a much better formed cross with confirms.) Then you have your normal things such as EMAs acting as dynamic resistance.

1. Failing to breakdown so bullish bias develops
2. EMA magnet which formed into a 14/50 cross
3. Break and retest of zone 
4. 14/200 cross & another retest

This is a very clear example of EMA confluence with price action. Firstly it was unable to breakdown. This was also towards the end of the week market close. Around a 4hr/daily support area so I didn’t think it would break at that particular time. So we see price moved away from the EMA and went back up for a magnet. Price clearly very bullish closed above the EMAs (dynamic support). It retested and spaced out which shows a valid cross. You could enter at the 14 EMA with tight SL for aggressive entries for TP at the 200 EMA. Or wait for the minor resistance zone at area marked 3 to be broken for more entries. This consequently followed by a further bull move for the 14/200 cross. EMAs acting as dynamic support. And if the 3rd entry scares you because 200 EMA is close that range was still 9-12 pips because GJ is on some steroids with the pip count.

1. Failing to breakdown. So waiting for breakout 
2. Breaks up and closes above EMAs.
3. Break of minor resistance zone 
4. Exhaustion & TP

Gold is a very volatile mover so it’s important to positon yourself correctly as it moves very liquidly. Might go for your SL before the right direction. So again patience and risk management is key if you are willing to take some drawdown. So around area marked 1 we can see its making touches to a support zone (200 EMA outlines this). Its failing to breakdown so im waiting for a breakout to take positions. At area marked 2 we see it closed above the EMAs which start spacing out. Would I take entries here? Probably not unless I have a tight SL (under the 14/50 EMA).Why? Because id still be looking for a breakout. Area 3 is a much better entry as we can see a strong bullish breakout from that consolidation zone. Area 4 we can see its now failing to push more so look to secure or trail profits.

1. Cross & respect of support 
2. Ascending bullish formation 
3. ,4,5 = retest and push up

Go through the picture and notice all the zones, the wicks, exhaustion, trend lines whatever you wish to use. I have only plotted zones of relevance to me as I know people have slight variations to this.

1. 200 EMA acting support. Look at the wicks all pointing down. This is a hint to say price is failing to break down so we are looking to go up. 
2. Towards this point I’m seeing an ascending formation. Price breaks up above both EMAs. Not a clean cross however. 
3. Look left and see its reached zone. Resistance has become support and it pushes up again. 4 is a similar support formation Notice at 4 and 5 we see the candles don’t really push far down and close quite close to each other. EMAs slightly messy too. Indicating low volume however the 200 EMA is still pointing up so the bias is still bullish.

Take a look at this and see where you would enter? Where your TP and SL would be? What does Price action tell you? What do EMAs tell you?

Trend and momentum identification!

Remember all the times I talked about the direction they are pointing? The steepness of the EMAs? The way they have spread out? Real key and simple things that help gauge anticipated price movement. If you forgot this and didn’t apply it to all the above examples. Go through it again and see how much easier things look Keep it simple! Don’t overcomplicate shit! You don’t need any books to teach you some missing miracle. It really all is chart time and nailing down analysis.