![]() ![]() Forex Trading Strategy - a Combination of RSI, EMA and Candlestick Setups.Forex Trading Strategy Combining Stochastic Oscillator and Two EMAs.Combining Relative Strength Index, Bollinger Bands and EMAs.Combining Fast and Slow Stochastic Oscillators with EMA.Forex Trading Strategy - Combining SMA, EMA and Moving Average Convergence Divergence.In other cases the stop will not be triggered, because the trader will have already closed his/her position. This is used as a precaution in case a sudden huge move occurs. The protective stop should be placed at the closest level of support, but the distance should not be less than 40-45 pips. The trader should abstain from making an entry, if the two crosses are not present. However, no more than 5 candles must be present between the two crosses. The cross of the MACD lines can occur earlier than the cross of the 5-period EMA and the 15-period SMA, or right after it. The indicators we will be using are: a 100-period Simple Moving Average (SMA) (blue on the chart below), a 200-period SMA (red on the chart), a 15-period SMA (white on the chart), a 5-period Exponential Moving Average (EMA) (yellow on the chart) and the Moving Average Convergence Divergence (MACD) (with settings short term – 12 long term – 26 MACD SMA – 9).Ī trader should make a long entry once: first, the 5-period EMA crosses the 15-period SMA from below to the upside, while the current candle has already closed and second, the two lines of the MACD also cross, while the current candle has already closed. This strategy is not recommended for sideways markets, as trading around the 20 EMA coupled with a relatively flat MACD profile can cause the strategy to buy the peaks and sell troughs easily.Forex Trading Strategy – combining SMA, EMA and Moving Average Convergence Divergence You will learn about the following conceptsįor this strategy we will be examining the 4-hour chart of GBP/CAD. However, it will successfully get you out of a turning market and automatically switch into a more 'risk-off' mentality during a bear market. This conservative strategy will slightly underperform in a bull market, with the sell condition occasionally being met and then potentially buying back higher. ![]() This strategy can be used in both bullish and bearish markets. However, the sell condition ignores the 20 EMA and will sell solely on the confirmation of a bearish MACD cross upon the close of the candle. The buy condition will only be met if both the MACD is bullish AND a close above the 20 EMA occurs. When the market is below the 200 SMA, the confirmation occurs in the opposite direction. This is to reduce the chances of the script selling prematurely in the event of a bearish MACD cross, if the market is still in overall bullish territory. In this bullish market, the script will only enable the sell condition if both the MACD is bearish AND a close below the 20 EMA occurs. Above the 200 SMA, the script will ignore the 20 EMA as a buy condition and buy solely on the confirmation of a bullish MACD cross upon the close of a candle. This incredibly simple strategy uses a combination of the 20 EMA and bullish/bearish MACD crosses as a low risk method of getting in and out of markets.ĭepending on whether the market is above or below the 200 SMA, the script determines if the market is in bullish or bearish territory. ![]()
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