EMA's crossover is a swing type
strategy to trend following.
Time Frame 30min, H1, H4. (30 min good
time frame for this forex strategy)
Currency pairs: EUR / USD, GBP / USD,
USD / CHF, USD / CAD, USD / JPY, AUD / USD, GBP / JPY, AUD / JPY.
Indicators:
Exponential moving average (24
periods,);
Exponential movinjg average (48
periods);
Exponential movinjg average (5 periods
median price);
Average directional Index (13 periods
with 30 level).
Strategy Concept
This forex method used moving averages
crossover as alerts of buy and sell. A crossover determine a change
of direction of the movement of the price but it can identify also a
change of momentum.
The ADX indicator in order to determine
the actual power of the momentum of the price.
If ADX is actually above 30 level we
can make certain that the momentum is really robust. For this reason
we not take trade when ADX (13) is below 30 level.
Buy Setup
ADX 13 > level 30
D+ >D-
Exponential moving average 24 cross
above Exponential moving average 48
Buy when the price, returns and bounce
on the EMA 5.
Set stop loss at the previous low swing
or below EMA 48.
Profit Target ratio stop loss 1.3 or
more.
 |
24/48 EMA's Crossover
|
Sell Setup
ADX 13 > level 30
D ->D+
Exponential moving average 24 cross
below Exponential moving average 48
Sell when the price, returns and
bounce on the EMA 5.
Set stop loss at the previous high
swing orabove EMA 48.
Profit Target ratio stop loss 1.3 or
more.
 |
24/48 EMA's Crossover
|
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