EMA crosses means when the Exponential Moving Average (the Blue and Purple Lines) crosses. During downtrend, the EMA 7 will be on top of the EMA 3. However during a likely trend changes, there will be a point which EMA3 cross over EMA 7, laying on top of EMA7. This is the point which EMA crosses and also the point which you should exit the short trade. The emphasis is on crossing and not just overlaying (touching). More than often when it overlay, there will be an inflection (Rebounds). So don’t act when only the EMA touches. Act when it has crossed over. Also only take action after the bar is completed (in this case every 15minutes interval).

I am learning the trade by following your blog. Thanks for sharing

Can you explain the following:

“I am trailing STOP LOSS to the point which the EMA crosses”

I am not so clear on this; EMA crosses what? a point/trend?