FREE FOREX STRATEGIES
Forex brokers comparison

Forex trading strategy #34 (55 EMA trend)

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
Indicator: 55ema
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.

The rule of "less than 40 pips" cannot be the same for 4hre, 1hre and 15m timeframe. I think it is obious.

You need to elaborate a little...

Insidebet

Hi buddy, could you share some charts. Cheers

Hi, how do you determine the direction of 55ema ?

Hans

this strategy works well

i am sorry for not responding to the reader of this strategy on time of which it's has to do with market research..... well, as regards the chart illustration, i will upload that when next i comes arround and as regard determining the market direction using 55ema, the normal or natural rule of the thumb is when price is downloading below 55ema we assume that is a down trend which we will be looking at selling or going short of that cuurency pair and if price is download above the 55ema we assume its an uptrend which we will be looking at going long or buying the pairs of which what actually matters is the curves of the 55ema. though you might one oscillator such as Macd to confirmed the direction. thanks as regards ratio 1:1 reward and risk, if you are using 1hour timeframe to place your entry, standard 40pips is recommended and 40pips take profit and if you are using 4hour as your entry point you will need 50pips stoploss and 80pips take profit but not in all cases....hope i have answered all questions except one of the chart upload...cheers...and happy trading.

I wanna add 12Ema and 24 Ema .. stop doing this .. when Both EMA cross each other ..it will minimize the loss atleast 20%!

How to add 55 EMA to the chart ?

adding 12 and 24 ema to it, make its another strategy entirely. one thing i can add to this strategy is to used the strategy on multi timeframe level.