---
title: "Exponential Moving Average (EMA) Entry Settings"
description: "How to enter based on EMA indicator settings"
url: https://help.optionsautotrader.com/en/articles/171-exponential-moving-average-ema-entry-settings
collection: "Options Auto Trader 101"
updated: 2026-04-16
language: en
---

# Exponential Moving Average (EMA) Entry Settings

How to enter based on EMA indicator settings

The **Exponential Moving Average (EMA) Entry Settings** allow you to control when your bot enters a trade based on whether the asset is trading **above or below a chosen EMA line**. This is especially useful for short-term or intraday trend strategies.

## What Is the EMA?

An **Exponential Moving Average (EMA)** is a type of moving average that places more weight on recent price data, making it more responsive to short-term market movements.

-   Unlike the SMA (which is based on the **daily chart**), the EMA in the Auto Trader is always calculated on the **1-minute chart**.
    
-   This means the periods are shorter (e.g., **10-minute EMA**, **12-minute EMA**, **20-minute EMA**) and are better suited for faster-moving strategies.
    

## How the Settings Work

When creating or editing an Auto Trader, you’ll find the **EMA Entry Rule** under **Entry Settings**.

-   **Period**: The number of minutes used in the calculation (e.g., 10, 12, 20).
    
-   **Direction**: Whether the bot should only enter if the asset price is **above** or **below** the selected EMA.
    

⚠ EMA Entry Settings are available for **ETFs, Stocks, and Index Options**. They do **not** apply to futures options. If used with a futures options Auto Trader, the EMA is based on **SPY** instead of the futures contract.

## Example

1.  **Intraday Trend Strategy**
    
    -   You want trades to follow short-term momentum.
        
    -   Set **Period = 12** and **Direction = Above**.
        
    -   The bot will only enter trades if the asset is trading above the 12-minute EMA on the 1-minute chart.
        
2.  **Reversal Strategy**
    
    -   You want to trade when prices dip below a short-term EMA.
        
    -   Set **Period = 20** and **Direction = Below**.
        
    -   The bot will only enter trades if the asset is below the 20-minute EMA.
        

## Why This Matters

-   EMA reacts faster to price changes than SMA.
    
-   Perfect for **intraday traders** who want strategies tied to short-term momentum.
    
-   Helps filter trades so bots only fire in the right short-term trend conditions.
    

## Summary

-   EMA Entry Rules use the **1-minute chart** for calculation.
    
-   Periods are shorter (e.g., 10, 12, 20 minutes).
    
-   You can filter trades by **above or below** the EMA.
    
-   Works with **ETFs, Stocks, and Index Options** (SPY is used for futures).
    
-   Best for **short-term and intraday strategies**.