The Exponential Moving Average (EMA) is a technical indicator used for analyzing the markets. This type of moving average places greater weight on more recent data points, so it is useful for traders in determining buy and sell signals. Traders often use several different EMA lengths, such as 10-day, 50-day, and 200-day moving averages. To understand how these can be used to your advantage, let's take a closer look at what EMA is and how it works.

Candlestick patterns are one of the oldest and most reliable tools for traders. They provide a visual representation of how prices change over time, and can help traders identify potential reversals in the market. One of the most commonly used reversal patterns is the morning star, which is made up of three candles - a tall black candle, a small black or white candle with long wicks, and then a third tall white candle. This pattern captures a moment of indecision in the market where the bears are beginning to give way to bulls and confirms that a reversal has begun. The opposite pattern to this is known as an evening star and signals the start of an uptrend into a downtrend.