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Forex trading strategy #31 (Bouncing EMA)

Author: Riki Risnandar
Personal Email: riki.risnandar at gmail.com
Difficulty: Simple
Personal Website About Forex (Indonesian Language): http://rikirisnandar.blogspot.com

I call this strategy 'Bouncing EMA' because the price is going up or down based on the trend. You won't find this moment every time but sometimes it's happen after there is big impact news when the price is spike.

Settings:
MACD 12,26,9 (default settings)
Stochastic 5,3,3 (default settings))
EMA 100 (Red) - Medium Trend
EMA 200 (Yellow) - Big trend

The strategy is like this:
After the big news arrived, the price will consolidation and when it touch the 50 EMA (30 Min Timeframe) or 100 EMA (1 hour Timeframe), it will going up or down based on the trend.

Let me give you some picture so you can understand:

Here example with EUR USD in 30M timeframe:

Bouncing EURUSD

and here is what happen 15 minutes later:

Forex EURUSD

Here example with AUD USD in 30M timeframe:

Bouncing AUDJPY

and here is what happen 15 minutes later:

Forex AUDJPY

There is some strict requirement before you're going to trade:

1. Trade AFTER ALL news for these pair is completed
2. You can wait for MACD confirmation to cross before going to trade
3. Make sure Stochastic is going down

You won't get hundred pips but WHEN the price bouncing with 50 EMA, the profit usually around 30 to 40 pips from the peak candle, and WHEN bouncing with 100 EMA (1 hour timeframe), the price usually bounce to max 70 pips from the peak candle. You have to wait and patience after making the trade, and set the stoploss to 25 to 30 pips. This strategy give me 96% winning trades, 4% loss because the trend is too weak.

Sometimes i also use this strategy to go into the trend, just dont forget to set the stoploss regularly.

If the trend is strong, usually i take profit with 30 pips.. wait for the retracement with fibonacci, then when its going to up/down again i get into the trade again then after it made profit i set the Trailing Stop (fire and forget, then you can go to sleep) but it's too risky.



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too complicated.

you call this simple ??? However , thanks a lot

Thanks for sharing your strategy Riki,

Your explanation and accompanying pics made it easy for me to understand, I don't think it's that complicated. If the strategy posts 90%+ winnings as you say it does, I'd be mad not to test it!

Cheers

poor stategy !

Nice looking system, however could tell me how to add the second moving average on the MACD?

I think its the green one.

it's good though! 30-50 pips in a day is a lot! i did noticed a huge potential once the price breaks 100sma.

MANTAPS Bro Riki Good Job & Well Done ... !

Best Regards;

Manus168

Is this strategy only for bearish market ? No buying singals ?

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