EMA Trio Forex Trend Following Strategy

Tim Morris

August 22, 2016

480

EMA Trio Forex Trend Following Strategy

This strategy works on a 4 hour and daily timeframe.

Forex Indicators:

Exponential Moving Average 5-period.
Exponential Moving Average 15-period.
Exponential Moving Average 60-period.
MACD (12,26,9).

Rules for Buy Entry:

We must first establish that we’re in a strong uptrend using these 3

EMA60 and EMA15 are both pointing up.
EMA5 is above EMA15.
MACD indicator is greater 0.

When the price oulls back and touch EMA 60. Enter with 2 lots.

Set SL at -40 pips and take profit at 40 pips and exit 1 lot.

Move stop loss to break even for the second lot. We then use a trailing stop of 40 pips for that lot. That means, when we’re 80 pips in profit, we move stop loss to 40 pips ( or close 2° lot in profit) And so on.

We can also move stop loss to the recent high each time price break that
high. That way, we can follow the trend until the end.

Rules for Sell Entry:

We must first establish that we’re in a strong downtrend using these 3

EMA60 and EMA15 are both pointing down.
EMA5 is below EMA15.
EMA15 is below EMA60.
3 MACD indicator is less than 0.

When the price to retrace, and touch the EMA60, enter with 2 lots.

Place SL at -40 pips and take profit at 40 pips and exit 1 lot.

Move stop loss to break even for the second lot. We then use a trailing stop of 40 pips for that lot. That means, when we’re 80 pips in profit,

we move stop loss to 40 pips ( or close 2° lot in profit). And so on…

We can also move stop loss to the recent low each time price break that low.

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