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 |
24/48 EMA's Crossover
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Oleh
Piratebay
