Why Traders Use EMA 1, EMA 9, EMA 26 – Complete Detailed Guide for Trend & Momentum Trading
In intraday trading, EMAs (Exponential Moving Averages) are considered one of the most powerful and widely used technical indicators. Values like 1 EMA, 9 EMA, and 26 EMA may look random, but actually they follow market cycle mathematics, Fibonacci behaviour, and institutional momentum structure.
If you understand how these EMAs work together, your trading – especially option buying – becomes more accurate, less emotional, and more rule-based.
This article explains:
✔ Why traders use EMA 1, 9, and 26
✔ Real meaning of each EMA value
✔ How professionals combine these EMAs
✔ Best EMA strategies with VWAP
✔ How to identify trend, reversal, breakout, and sideways markets
✔ FAQs for beginners and advanced traders
What is EMA? (Beginner Friendly Explanation)
EMA stands for Exponential Moving Average, a type of moving average that gives more weight to recent price movement.
Because it reacts fast, traders use EMA to:
-
Catch trend early
-
Detect momentum
-
Filter false moves
-
Enter trades with timing
-
Identify pullbacks and continuation setups
Unlike SMA, EMA doesn’t lag too much, making it the best choice for intraday trading, scalping, and option buying.
⭐ Why EMA Values Like 1, 9 & 26 Are Used (Deep Explanation)
These EMAs represent different speed zones of the market:
| EMA | Speed | Purpose |
|---|---|---|
| 1 EMA | Ultra-fast | Captures current candle direction |
| 9 EMA | Fast | Tracks short-term trend |
| 26 EMA | Medium | Filters trend / identifies reversals |
Let’s understand one-by-one.
1️⃣ EMA 1 – Ultimate Speed, Pure Price Action
EMA 1 means the line moves exactly with the price.
Why traders use EMA 1
-
Helps catch micro-momentum
-
Shows real-time push/pull force
-
Best for timing breakout entries
-
Helps detect fake breakouts early
-
Lets you know if the candle is strong or weak
If you use EMA 1 with 9 & 26, you know immediately when momentum shifts.
2️⃣ EMA 9 – Short-Term Trend Controller
EMA 9 is the heart of intraday trend.
It tells you:
-
Is the market taking support/resistance?
-
Is the pullback ending?
-
Is continuation coming?
-
Are buyers / sellers strong?
Why traders love EMA 9
-
It reacts fast
-
But also filters noise
-
Perfect for short-term entries
-
Best for option buying
When the candle closes above EMA 9, buyers are strong.
When closes below EMA 9, sellers dominate.
3️⃣ EMA 26 – Trend Filter & Reversal Detector
EMA 26 works as a base trend direction indicator.
Purpose of EMA 26
-
Confirms whether the market is trending
-
Identifies sideways vs trending markets
-
Helps find major reversals
-
Acts like a “trend boundary line”
If EMA 9 is above EMA 26 → bullish trend.
If EMA 9 is below EMA 26 → bearish trend.
Combined with EMA 1, this becomes extremely powerful.
⭐ Combined Power: EMA 1 + EMA 9 + EMA 26
Professional traders use these three EMAs together to read:
✔ Trend
✔ Momentum
✔ Reversal
✔ Breakout
✔ Sideways behaviour
Bullish (CE Buy) Conditions
-
EMA 1 > EMA 9 > EMA 26
-
Price above VWAP
-
Candle closing above 9 EMA
-
No big wick rejection
Bearish (PE Buy) Conditions
-
EMA 1 < EMA 9 < EMA 26
-
Price below VWAP
-
Candle closing below EMA 9
-
Continuation pattern visible
This is one of the most reliable intraday setups.
⭐ EMAs + VWAP = High Accuracy
VWAP shows where institutions buy/sell.
Best signals occur when:
✔ EMAs are aligned
✔ Price is on correct side of VWAP
✔ Breakout candle closes strong
When the price is:
-
Above VWAP → look for CE
-
Below VWAP → look for PE
EMAs show momentum.
VWAP shows institutional direction.
Together they create a high probability setup.
⭐ How to Identify Sideways Market Using EMAs
Sideways market is the biggest enemy for option buyers.
Sideways is confirmed when:
-
EMA 1 crosses EMA 9 repeatedly
-
EMA 9 & EMA 26 stay flat
-
Price stays around VWAP
-
Candles are small with wicks
Avoid option buying in these situations.
⭐ EMA-Based Trading Strategy (Easy to Follow)
For CE (Call Option Buy)
-
EMA 1 above EMA 9
-
EMA 9 above EMA 26
-
Price above VWAP
-
Strong green candle close
-
Trend continuation pattern
For PE (Put Option Buy)
-
EMA 1 below EMA 9
-
EMA 9 below EMA 26
-
Price below VWAP
-
Strong red candle close
-
Trend continuation pattern
This avoids 80% wrong trades.
⭐ Why These EMAs Are Not Random Numbers
They are based on:
✔ Fibonacci numbers
✔ Market cycle behaviour
✔ Institutional trend analysis
✔ Mathematical smoothing
✔ Decades of professional testing
This is why 9 & 26 are standard values across the world.
Top 15 FAQs (SEO-Friendly, High Traffic Keywords)
1. Why do traders use EMA 9?
EMA 9 is a fast-moving average that identifies short-term trend and momentum, ideal for intraday trading.
2. Why EMA 26 is important?
EMA 26 represents medium-term trend strength and acts as a trend filter.
3. What is EMA 1 used for?
EMA 1 shows real-time price direction and helps confirm momentum.
4. Which EMA is best for option buying?
For option buying, EMA 1, EMA 9, and EMA 26 combination with VWAP is highly effective.
5. Is EMA better than SMA for intraday?
Yes, EMA reacts faster and gives early signals compared to SMA.
6. What time frame is best for EMA trading?
5-minute and 15-minute charts are most suitable for EMA-based trading.
7. What is the best EMA crossover strategy?
EMA 1 crossing EMA 9 while EMA 9 is above EMA 26 gives powerful entry signals.
8. How to avoid false EMA signals?
Use VWAP, higher timeframes, and wait for candle close confirmation.
9. Can EMAs work in sideways markets?
No, EMAs fail in sideways markets; avoid trading when EMAs flatten.
10. What does EMA crossover mean?
Crossover means one EMA crossing another, indicating a trend shift.
11. Which is better: EMA 9 or EMA 20?
EMA 9 is faster, better for day trading; EMA 20 is slower, better for swing trading.
12. Do EMAs work on Bank Nifty and Nifty?
Yes, EMAs work excellently on both indices for intraday.
13. Can I use EMAs for scalping?
Absolutely. EMA 1 & EMA 9 are perfect for scalping momentum.
14. Are EMAs reliable for breakout trading?
Yes, when combined with VWAP and volume confirmation.
15. What is the best EMA for trend identification?
EMA 26 is widely used as a primary trend identification tool.
Conclusion
EMA 1, EMA 9, and EMA 26 are powerful indicators that help traders clearly understand:
✔ Trend
✔ Momentum
✔ Reversal
✔ Breakout
✔ Sideways market
If you combine EMAs with VWAP and candle closing strength, your option buying accuracy increases significantly.
Comments
Post a Comment