159# Ema's Forex Trading Strategy

Submit by Janus Trader 18/12/2011

 

Time Frame 15 min

Currency pairs: any

 

Indicators:

Candle stick

BB(14,2)

EMA(10)

EMA(20)

EMA(50)

EMA(100)

EMA(200)

STOCH, FULL (14,3,3)

ATR (14)

Long Position:

See uptrend by direction of EMA's: open up in the same direction, at least EMA (200) is underneath

In Stochastic, crossover below 20 line

Crossover of EMA(10) SMA(14) (EMA should cross over SMA upwards)

Close of the entire candle stick above and after crossover of EMA(10)&SMA(14)

Trigger: The close of the candlestick

Target: Recent swing high OR next 00/50 number (i.e. 1.4000, 1.4050)


Stop: The price of swing low extended with ATR(14) value. (i.e. swing low is 1.4089, andATR(14) is 14; then, the stop is 1.4075)

Short Position:

Do the opposite. Stochastic must have crossover above 80 line. And Candlestick must close below the MA crossover.

Volatility: More distance between EMA's, more volatile.

Note: that in high volatility, it's ok to get in trade even if the only body part of candle is above the crossover.

Trendiness: More EMA's are in same direction, more trendy.

Note that if the price movement is so trendy (a.k.a. all EMA's are in same direction and fanning out upwards), it's ok to be greedy for the take profit (i.e. skipping one 00/50 value).

For really greedy trader and risk taker, it's not too bad to trade with this S'ema forex strategy against the trend as long as for the short term (i.e. 15-min chart).

 

 

In the picture Ema'a trading system in action.

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