100 EMA & MACD Forex Trend Following Strategy

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Last Updated on May 8, 2025 by Tim Morris

100 EMA and MACD Trading System

This system uses Damiani indicator that works on 4 hour timeframe. We can refer EMA 100 as our support/resistance line. It is advisable to use in all major currency pairs.

Forex  Indicators:

  • 100EMA
  • MACD (15,26,9)
  • Damiani Volameter (13,26,37,100,1,3)

Rules for long entry:

  • Enter long position when price closes above 100 EMA.
  • MACD histogram must be above 0 line.

Rules for short entry:

  • Enter long position when price closes below the 100 EMA.
  • MACD histogram must be below 0 line.

Rules for re-entry:

  • Re-enter position in the direction you took the position for the first time when the price gives a long or short signal and retraces back to EMA 100. Do re-entry twice and observe.

For retrace entry:

  • When a bar is over 100 pips then wait for a retracement to occur towards the
    100 EMA line and then enter. This will save you from unnecessary draw down.

To exit position:

Take 3 positions per trade. Set TP to 40 for the first position, 70 pips for the 2nd and 3rd.

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