EMA Signals Forex Trading Strategy

Trading has always been a thing for the big boys i.e. big banks, institutional investors, multinational companies, etc. with a pool of cash at their disposal.

Interestingly, small investors are increasing getting more successful in their trading career, all thanks to basically well-crafted forex strategies and one of such is the EMA Signals forex trading strategy.

Let’s take a look at how to buy and sell any forex pairs with the great precision EMA Signals forex strategy.

Chart Setup

MetaTrader4 Indicators: EMAAngleZero.ex4 (default setting), ExponentialMovingAveragesSignals.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

Download

Download the EMA Signals Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  1. If the green upward pointing arrow of the ExponentialMovingAveragesSignals.ex4 custom indicator aligns somewhat below price bars (refer to Fig. 1.0), price is believed to be in favor of a bullish sentiment i.e. a signal to go long on the currency of focus.
  2. If the lime green histograms of the EMAAngleZero.ex4 custom indicator gets aligned above the 0.00 level, price is said to be pushed higher, hence a trigger to go long on the designated currency pair.

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:

  1. If a red downward pointing arrow of the ExponentialMovingAveragesSignals.ex4 custom indicator takes up space somewhat above the candlesticks as shown on Fig. 1.0 during a buy alert, an exit or take profit is advised.
  2. If yellow or fire brick filled histograms of the EMAAngleZero.ex4 custom indicator readjust to form below the 0.00 level, an exit or take profit should be considered immediately.

Sell Entry Rules

Enter a sell if the following holds sway:

  1. If the red downward pointing arrow of the ExponentialMovingAveragesSignals.ex4 custom indicator aligns fairly above price bars as shown on Fig. 1.1, price is believed to be in favor of a bearish sentiment i.e. a signal to go short on the selected currency pair.
  2. If the fire brick or yellow histograms of the EMAAngleZero.ex4 custom indicator gets aligned below the 0.00 level, price is said to be pressured lower, hence a trigger to go short on the designated fx pair.

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 takes center stage:

  1. If a green upward pointing arrow of the ExponentialMovingAveragesSignals.ex4 custom indicator takes up space somewhat below price bars as depicted on Fig. 1.1 during a sell trigger, an exit or take profit is advised.
  2. If lime green histograms of the EMAAngleZero.ex4 custom indicator readjust to form below the 0.00 level during a bearish signal, an exit or take profit is highly recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the EMA Signals Forex Trading Strategy

About The Trading Indicators

The EMAAngleZero.ex4 custom indicator is a filter that helps keeps traders away from sideways markets in the absence of any trend. It deploys EMA 34 along with an angle threshold of 0.2 to aid spot sideways market.

The ExponentialMovingAveragesSignals.ex4 is a custom indicator that applies the faster EMA (5) and the slower EMA (6) crossover in defining market trend.

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