Forex trading strategy #8 (EMA breakthrough)
Submitted by Edward Revy on February 28, 2007 - 14:45.
Sooner or later all Forex traders begin experimenting with different EMA settings.
Quite often very interesting combination can be spotted. Here is one Simple Forex system based on 50 EMA indicator.
Any currency pair.
Time frame: 90 minute or 3 hour chart, 4 hour chart
Indicator: 50 EMA.
Entry: watch for a candle to pierce 50 EMA and finally close above (to enter Long) or below (to go Short). Enter with the second candle after it makes 5 pips higher than the previous one.
Exit: not set.
Stop loss order: 15 pips below 50 EMA.
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
can I use this strategy in a 20 day chart ?
You should read the previous posts... Works on almost all timeframes.
Hi Edward,
I'm new to this forex. I use MT4. Does this work for 1 hour time frame? If not, what would you recommend for 1 hour time frame?
Thanks.
John
Dear Edward,
I have been trying this method since monday (2 days only so far). It gave me really good signals when to enter a position. According to my 2 days experience, ADX is the best indicator showing when to exit the position...
Best regards,
Dear Edward,
Please give us your opinion if this method works with 15 minutes charts? I checked the previous charts in MT4, it seems the strategy also works for 15 minutes.. What do you think?
Thanks and best regards,
Ibrahim.
Dear Edward,
Unfortunately I read your 50 EMA strategy on Friday just before the market closes. I am excitedly waiting for sunday night 00.00 to give it a try.. I will keep you informed...
Regards,
guys this strategy works well on higher time frames just look at previous piercing through the 50 ema line and and even after the cross it reverses you still can gain some pips i suggest using a 4 13 and 50 ema when the 4 ema crosses the 50 followed by 13 i enter with macd settings 2 10 4 for long macd should be above 0 and for sell macd should be below also look for early strong reversal candlesticks hammer engulfing etc
happy trading
I trade this method.
Entry is just above/below the most significant support/resistance area after the MVA is crossed.
My exit.. always near a support/resistance area on the other side of the MVA. If I get a sharp/quick move in my direction I will set my stop to break even, I hate losing. As well, if my trade continues, I set my stop just below/above the low/high points. Or if I get to a point where I'm at a 5:1 or higher win:loss ratio I may just exit and take the profits with a fat smile.
I trade this on 30-min or higher(higher generally seems safer/reliable), but obviously takes longer.
Some time there is a swing but not a clear one like in this example. There is a method to distinguish the future clear cross and swings by the "noisy" one. I mean some time the lines cross but get immediately back crossing again and so on... I think in this case there is a side-ways market which sometimes can lead to losses.
If it doesn't make 5 pips, we wait.
Replacement or not, we'll still need to have our condition met (which is 5 pips).
Regards,
Edward
What happens if it doesn't make 5 pips? We should expect a sooner retracement or something?
Definitely, yes!
My chart software doesn't have 3 hour charts. Can I use 2 or 4 hours? Thanks.
But 5 pips lower or higher then the previous low or high means the candle will travel 5 pips and then close above or below that low or high or can even travel that 5 pips and then retrace, in this we should observe the wick that remain??
To be able to discuss it, I'd need to see your chart.
Regards,
Edward
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