Gunbot employs the Exponential Moving Average (EMA) technique to pinpoint ideal buy moments. It purchases when the price falls beneath the lowest EMA and sells once a predetermined profit percentage is attained.
EMA is an analytical tool used in technical analysis that computes the average cost of an asset within a designated time span, placing greater emphasis on recent prices. As a result, it is more sensitive to shifts in the price trend compared to the Simple Moving Average (SMA). Traders frequently utilize EMAs to detect potential trading signals since EMA crossovers may signify market tendencies. Additionally, EMAs can mitigate short-term price fluctuations, making it simpler to identify long-term patterns.
Utilizing the Strategy
Conditions for Buying
A purchase order is permitted when the price is at least a specified buy level % below both the slow EMA and fast EMA.
Conditions for Selling
A sale order is permitted once the gain % profit target is met.
This example demonstrates the performance of the profit optimization strategy.
The graphic below outlines the factors that initiate trades using this approach: