Technical Analysis - EMA & MACD

Technical analysis is important besides fundamental analysis. Combine both analysis will help to reduce risk and maximize profit. 

I have to pay for my mistake in Hevea for not understanding technical analysis. Let looks the buy and sell signals using technical analysis.

EMA (5,10)

I use 5 days and 10 days because the price fluctuation is high. 5 day EMA is represent by red line and 10 day EMA is represent by green line. 5 day EMA always moves faster than 10 day EMA. When the cross over happen, it is an indication of pattern change. In this case it is sell signal (see chart below).

 

MACD (12, 26, close 9)

MACD is 12 days EMA minus 26 days EMA and represented by blue line. Signal line is 9 days EMA. There are two signals here.

First is buy signal when MACD cross the centerline (zero). Second is sell signal when the MACD cross the signal line (9 days).

 

I failed to recognize these signals and have to pay for my mistakes. Hopefully will never repeat the mistake again.