Top Pick Trading Forum

Hello! I'm currently working through lesson 4.4 - EMA Integration. I think I understand the minimum thresholds, but I would like to make sure.
Minimum thresholds - directional trade within 1.5-2.0 points of ema (the bar closes < 2.0 of ema), mean reversion trade >=2.0-2.5+ points from ema (the gap between bar closes and ema > 2.0?)

Note the 1st one is a max threshold. The trade must be within 2 points of the ema. It prevents "buying too high". The second one helps to ensure that there is sufficient force to merit a mean reversion trade (is the rubber band stretched enough to hurt when it snaps back).

While experience in different markets may slightly adjust those values, they are excellent initial reference points.

Good trades to you!

Thanks, Eric, for the clarification.