Last updated: May 13, 2025

10 And 20 SMA With 200 SMA Forex Swing Trading Strategy

This swing trading strategy is a comprehensive and simple approach in trading higher timeframes such as 4-hour and daily timeframes. This system uses a moving average which determines a trend direction and trend change.

Uptrend and Downtrend:

Uptrend: When 10 EMA crosses above 20 EMA.

Downtrend: When 10 EMA crosses below 20 EMA.

Trading Conditions:

Buy Entry:

1. 10 EMA must cross above the 20 EMA. The market must be in an upward direction.
2. 10 EMA and 20 EMA are above the 200 EMA.
3. Place buy stop order 5 pips above the high of the bullish reversal candle.
4. Place stop loss at least 5 pips below the low of the bullish reversal candle.

Sell Entry:

1. 10 EMA must cross below the 20 EMA. The market must be in a downward direction.
2. 10 EMA and 20 EMA are below 200 EMA.
3. Place sell stop order 5 pips below the low of the bearish reversal candle.
4. Place stop loss at least 5 pips above the high of the bearish reversal candle.

Target Profit:

• Take profit at 1:3 risk and reward ratio or at the previous swing high or low.

The Use of EMA 200.

EMA 200 is used to clearly identify the main trend. Combine this with the EMA 10 and 20, you can have a good signal for entry. If you are looking to buy, the condition for this is the EMA 10 and 20 must be above EMA 200 and EMA 200 must be in an upward direction. For sell position, EMA 10 and 20 must be below EMA 200 and EMA 200 must be in a downward direction.

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