I've been using the 50 EMA in my own strategy for quiet some time now as it has been holding very often and it has proven to me that it is indeed a great tool to have. However, it makes me think that the 50 EMA is not really a dynamique SR as people tend to say but just very often coincides with a support/resistance level in the past (or pivot, trendline, round number, etc. you name it), thus, making the 50 EMA just a visual help to "expect" a reaction. I am also brave enough to call the 50 EMA just an illusion?
What is your opinion on this?
I've seen so many examples that pure price action trading can be very profitable and is the right path to go and that the 50 EMA is just a "newbie-friendly" helper?
What is your opinion on this?
I've seen so many examples that pure price action trading can be very profitable and is the right path to go and that the 50 EMA is just a "newbie-friendly" helper?