3 Exponential Moving Average Forex Trend Following Strategy

This is a trend following strategy based on three Exponential moving averages with levels (50 and -50). WPR slow indicator is also use as reference or for filtering. This strategy uses 1 hour and 4 hour chart.

The Indicators needed:

• Exponential Moving Average 5; (with levels 50; -50)
• Exponential Moving Average 11;(with levels 50; -50)
• Exponential Moving Average 50;(with levels 50; -50)

Forex Indicators:

• Exponential Moving Average 5-period (EMA5, Black color in the
  illustrations with levels 50; -50);
• Exponential Moving Average 11-period (EMA11, Blue color in the
  illustrations with levels 50; -50);
• Exponential Moving Average 50-period (EMA50, Green color in the
  illustrations with levels 50; -50);

Buy Entry:

Uptrend Identification:

• EMA50 and EMA11 are both pointing up.
• EMA5 is above EMA11.
• EMA11 is above EMA50.

When we have these three conditions, we know that we’re in an uptrend.

Re-enter when price fall back and touch 50 EMA.

Filter optional: (WPR slow indicator confirmed with red bar sell signals).

Stop Loss must be at -40 pips.

Should the trade reach 40 pips, exit one lot and use SL to breakeven. Use trail stop of 40 pips or move SL to the recent high each time price break that high.

When EMA 50 & EMA 11 are pointing up, and EMA 5 is above EMA 11 and EMA 11 is above EMA 50, then market is a strong uptrend.

Sell Signals:

• Identify first if it is a strong downtrend.
• EMA50 and EMA11 are both pointing down.
• EMA5 is below EMA11.
• EMA11 is below EMA50.

Re-Enter when price fall back and touches EMA 50.

Stop Loss must be set at -40 pips and take profit at 40 pips.

Move SL to break even and use trail stop of 40 pips or move SL to the recent low each time price break that low.

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