What is so important about this 200 EMA as it runs along price bars on Forex charts?
For some really unknown to me, as a relatively new (only 1 year with Forex) Forex trader, this EMA has happen to be favorite EMA for many Forex traders...
200 EMA counts long period average of 200 price bars. It is known to be a moving flexible sort of a trend line, that draws a line between bears market and bulls market territory.
Vast majority of Forex traders obey 200 EMA suggestion and sets their orders accordingly: trading above 200 EMA - only buy orders, trading below 200 EMA - only sell orders.
Also if to set 200 EMA on the chart one can notice that a clear break of 200 EMA is always followed by a decent rally or a sell off.
Not having 200 EMA on Forex daily chart is believed to be a bad manner... Is it so?
May be yes, if to consider that 200 EMA has somehow become so popular; may be know if a trader is not intended to use this 200 EMA suggestions anyway.
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