EMA is a good strategy for trend trading. Traditionally traders are bullish when price is above the 200 EMA and bearish if price resides under the average. It is the universal trading strategy for trading stocks, currencies and other commodities.
As I am using forex indicators I do not have clear concept about EMA strategy. But so far I have seen some of my friends are using EMA strategy and they are doing very well. It is basically for trend followers. But what I have found that all strategy are not good and applicable for all trader. Because different trader found different strategy as appropriate for them. Like indicator user will not get any advantages from EMA.
For stocks I use two - 50 and 200, with decay value of 0.3. It is a matter of taste though and only your trades will show if you made correct choice of MA settings.
Well, it seems to me that today there are many more original and profitable strategies that deserve attention. And this can already be attributed to the standard and used as a basis for further development in the market.
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