In my opinion, traders often misunderstand the EMA strategy because they use it solely as a buy-sell signal based on crossovers. However, Ed Ponsi emphasizes that the EMA is not a tool for predicting reversals, but rather for reading trend context. In other words, the EMA is more effective as a trend filter, not as a sole entry tool. Entries must still be confirmed by price action, market structure, support and resistance levels, or candlestick patterns.
