hi lee

i dont know if this will help but here is a little write up..if you want i could send you a little more info through e-mail..

EMA Trend Indicator
By now, it should be obvious that an important part to successful trading is trading with the trend. We have all heard that the trend is our friend. However, the actual application of trading with a trend is a little more complicated than it sounds. In the last series of chart examples, breakouts and confirmation of a change in trend using trendlines were shown. Most readers will have just focused on the breakouts… but the astute trader focuses more on the period of time in between breakouts. These trading channels, which sometimes can last for a significant period of time, are where we want to actively trade. It’s so easy to get caught up in waiting for a breakout to enter a market… all the while forgetting that the big money is made by consistently identifying a trending market and aggressively trading within an established trend or trading channel.
The EMA Trend Indicator provides a simple way of determining the primary and intermediate trend with a quick glance of a chart. EMA stands for exponential moving average. An exponential moving average differs from a simple moving average in that more weight is given to recent price activity. I use a 50-day EMA on the daily chart to identify the primary or dominant trend. I color this EMA blue. This EMA represents the trend of the next dominant time frame above the one being traded. So if I am trading off the daily chart, the slope of the blue 50 EMA line signals the direction of the weekly chart. This EMA can sometimes act as supportand resistance on a good correction against the trend. A solid penetration above or below the blue line can be considered to be a “breakout.”
I also use a 22 EMA to define the intermediate trend, which is the time frame to be traded. I color this EMA red on the chart (they are dotted lines in the chart examples). This EMA does a good job of containing prices during a strong trend, much like a trendline, therefore, it can be said that the 22 bar EMA also acts as support or resistance. In a downtrend prices should be trading below the red line, and in an uptrend prices should be trading above it. When prices trade past the red line on a correction against the trend, it denotes a weakening trend or potential reversal so a weekly chart should be consulted.
Using this indicator will instantly tell you the quality of a trend in any market. It’s easy to use and is a real time saver when scanning the markets for opportunities.
1. If the red line is above the blue line, the trend is up. If the red line is below the blue line, the trend is down.
2. If the slopes of the EMAs are slanting up or down, the trend is usually “healthy.” If they are leveling off in a horizontal direction the trend is considered to be "weakening" but not necessarily over.
3. If the red line is turning towards the blue line, trend is weak and possible reversing. Check trendlines on daily and weekly charts and look for confirmation of a breakout.
4. When a market makes a strong move away from the moving averages, expect the red or blue lines to acts as support or resistance. These EMAs will sometimes act as a “sling shot” by slowing, reversing, and then “pushing” prices back towards the direction of the trend.