Market Trend

Understanding the trend of the market starts with just three things: the 10 EMA, the 20 EMA, and the 50 EMA. These are all daily exponential moving averages (DEMA), and when aligned properly, they reveal whether the market is bullish or bearish.

Bullish Trend Criteria:

● 10 EMA is over the 20 EMA
● Price is over the 50 EMA
● This setup = Bullish Trend

Bearesh Trend Criteria:

● 10 EMA is under the 20 EMA
● Price is under the 50 EMA
● This setup = Bearish Trend

Special Note:
If price closes under the 20 EMA,

● Wait to put on new trades
● Until price closes over the 10 EMA again

Visual Example (Using SPY Chart):

Bullish Example:
10 EMA over 20 EMA, price over 50 EMA
→ Bullish trend

Bearish Example:
10 EMA under 20 EMA, price under 50 EMA
→ Bearish trend