“The 10-day EMA is my favorite indicator to determine the trend. I call it ‘red light, green light’ because trading requires you to trade on the right side of the MA to maximize the probability of profits. If the price is above the 10-day EMA, you have the green light. The market will be in a positive mood and you should think about buying. On the other hand, a price below the 10-EMA indicates a red light. The market is in a negative mood and you should think about selling.”

Marty Schwartz