Forex trading strategy #34 (55 EMA trend)
Submitted by User on May 5, 2010 - 03:25.
I just want to share my little observation about this most lucrative business. It's a factual fact that no matter the strategy you are trading this market will violate it one or many several times that might want to tempt you of leaving the strategy but the still remain that no holy grail any where of which as a matter of fact, what matters in this business is solid money management and high probability winning trade set-up that is stress free. so, below is the strategy which is based on trending Market.
Timeframe: Any but i will recommend 4hour, 1hour and 15mins
Currency: Any pairs of your choice but i will recommend EURUSD, GBPUSD and USDCHF or you might include commodities.
Trading Rules: Come at any market opening i.e. Asian Session, London/Euro Session and US session.
Check where the price open and measure the distance from opening of the price to the 55ema if the distance is not more than less than 40pips open a trade in the direction of the 55ema and used 40pips stoploss and 40pips take profit in assian session but if London/US session you can used 40pips stoploss and 60pips take price.
The idea behind this trade set-up is that if price is above 55ema we assume its an uptrend and if price is below the 55ema we assume is a downtrend of which the timeframe determine how long the trend is is short, medium or longterm trend... when using larger timeframe we assume it's a longterm trend and when using shorter time frame is a short term trend and most important thing is if the shorter timeframe is contradicting the longer timeframe which means you are trading against the longterm trend which is delicate.
I will highly appreciate and welcome modification from guru traders.
Though their is no holy grail in any where but we only need something that has high winning compare to losing one.
my email is :sat2realmentor(at)yahoo.com,
or call:+2348034363444 for details or more clarity but hope i have affected some newbies that is reading this strategy one way or the other positively.