Simple MACD and EMA Forex Trend Following

August 16, 2016

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Simple MACD and EMA Trading System

This simple strategy uses more on MACD and moving averages specifically exponential MA. Use 15 minute chart for this system. Set moving average to 20 and MACD to (12,26,9).

Rules for a Long Trade:

Look for a pair to trade below the EMA 20 and MACD must be negative.
Price must cross above the EMA 20. MACD must be crossing from negative to positive territory not longer than 5 bars.
Enter long 10 pips above the EMA 20.

Set stop loss at the swing low on 5 minute chart. This is if you are aggressive. For conservative trade, set stop loss to 20 pips below EMA 20.

You can sell half of position at the entry plus amount risked. Move stop on second half to break even.

Trail stop by higher of break even or EMA 20 minus 15 pips.

Rules for a Short Trade

Look for a pair to trade above the EMA 20 and MACD to be positive.
Price must cross below the EMA 20. MACD must be crossing from positive to negative or crossed into negative territory not longer than 5 bars.
Enter short 10 pips below the EMA 20.

Set stop loss at swing high on 5 minute chart, if you are aggressive and place stop loss to 20 pips above EMA 20 if you are conservative.

Go long again taking half of position at entry minus amount risked and move stop on second half to breakeven

Trail stop by lower of break even or EMA 20 plus 15 pips.