Trading can be simplified if traders actually get their thinking cap on, and to be able to do this, one has to design a trading strategy that appeals the market and is adaptable to price swings.
The EMA 5 10 34 forex trading strategy promptly detects market trends and visually display such setups on your screen for you to take action.
Chart Setup
MetaTrader4 Indicators: TrendEnvelopes_v1.ex4 (default setting), EMA 5 10 34 Crossoverl.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy in the market if the following indicator or chart pattern takes center stage:
- If the blue upward pointing arrow of the EMA 5 10 34 Crossoverl.ex4 custom indicator gets aligned just somewhat below the candlesticks as seen on Fig. 1.0, the market sentiment is said to be bullish, hence a trigger to go long on the pair of interest.
- If the light blue line of the TrendEnvelopes_v1 custom indicator gets outlined just below price bars as illustrated on Fig. 1.0, price is said to be pushed somewhat higher i.e. a trigger to buy the asset of focus.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the red downward pointing arrow of the EMA 5 10 34 Crossoverl.ex4 custom indicator forms above price bars as depicted on Fig. 1.0 while a buy signal is ongoing in the market, a possible price dip is said to be looming, as such an exit or take profit is advised.
- If the orange line of the TrendEnvelopes_v1 custom indicator forms above the candlestick during a bullish trend, it is a pointer to a possible price dip, hence an exit or take profit is advised.
Sell Entry Rules
Initiate a sell entry if the following holds true:
- If the red downward pointing arrow of the EMA 5 10 34 Crossoverl.ex4 custom indicator gets aligned just somewhat above the candlesticks as seen on Fig. 1.1, the market sentiment is said to be bearish, hence a trigger to go short on the pair of interest.
- If the orange line of the TrendEnvelopes_v1 custom indicator gets outlined just above price bars as illustrated on Fig. 1.1, price is said to be pushed somewhat lower i.e. a trigger to sell the asset of focus.
Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds sway:
- If the blue upward pointing arrow of the EMA 5 10 34 Crossoverl.ex4 custom indicator forms below price bars as depicted on Fig. 1.1 while a sell signal is ongoing in the market, a possible price jump is said to be looming, as such an exit or take profit is advised.
- If the light blue line of the TrendEnvelopes_v1 custom indicator forms below the candlestick during a bearish trend, it is a pointer to a possible price appreciation to the upside, hence an exit or take profit is advised.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The TrendEnvelopes_v1 is a custom indicator that shows trend by using its orange (bearish signal) and light blue (bullish signal) lines aligned above or below price bars respectively.
The EMA 5 10 34 Crossoverl.ex4 custom indicator is a modified exponential moving average indicator that gauges trend.