EMA DIAGONAL ALIGNMENT STRATEGY

This strategy combines two Meta Trader indicators to determine trade entry signals. The indicators are Exponential Moving Averages EMA and Awesome Oscillator.

Below are the  EMA settings and the images below also show the necessary conditions before placing a buy or sell trade on any currency pair.

Indicators

The EMAs are eight in number;

-50 EMA, Apply to High,  Blue color

-40 EMA, Apply to High,  Blue color

-30 EMA, Apply to High,  Blue color

-20 EMA, Apply to High,  Blue color

-50 EMA, Apply to Low,  orange color

-40 EMA, Apply to Low,  orange color

-30 EMA, Apply to Low,  orange color

-20 EMA, Apply to Low,  orange color

-Awesome Oscillator (default setting)

 

EMA ALIGNMENT SIGNAL

GBPCHF 15 OCT 2018 9:33 GMT

diagonal

CHFJPY ALIGNS (15 OCT 2018 7:38 GMT)

diagonal

EURGBP: ALIGNMENT IN ACTION (15 OCT 2018 7:21GMT)

Diagonal

USDJPY: ALIGNMENT IN ACTION (15 OCT 2018 7:15 GMT)

Diagonal

 

EURUSD: Attempting an impulsive bearish crossover on 1 hr chart (12 OCT 2018 9:35GMT)

Diagonal

 

AUDCAD JUMPS AS 15 MINS ALIGN WITH 1HR (11 OCT 2018 13:55 GMT)

Diagonal

 

GBPUSD: JUMPS AS 30MINS ALIGNS WITH 4 HR (11 OCT 2018 12:44 GMT)

Diagonal

 

NZDUSD: 15mins aligns with 1 hr (11 OCT 2018 10:57 GMT)

Diagonal

 

EURGBP: IMPULSIVE BULLISH CROSSOVER ON EMA BAND ON 1 HR CHART SIGNALLING POSSIBLE RETRACEMENT (11 OCT 2018 10:36 GMT)

Diagonal

NZDUSD (11 OCT 2018 8:27 GMT)

Diagonal

USDJPY: 15 mins aligns with 1 hr (10 OCT 2018 21:35 GMT)

Diagonal

 

GBPUSD: 15 mins aligns with 1 hr (10 OCT 2018 14:46 GMT)

Diagonal

GBPJPY: 10 OCT 2018 11: 18 GMT

Diagonal

GBPJPY: 15MINS ALIGNS WITH 1HR FOR A BUY (10 OCT 2018 08: 31 GMT)

Diagonal

 

EURGBP: (10 OC 2018 06:20 GMT)

Diagonal

EURAUD: 15MINS CURRENTLY ALIGNS WITH 1 HR FOR A SELL TRADE (9 OCT 2018 21:03 GMT)

Diagonal

 

 

Diagonal

Diagonal

Diagonal

 

Diagonal

How It Works

Sell Signal Conditions

The three conditions below must be met for a SELL trade to be placed;

-Did price cross and close below all the eight EMA lines?

-Is a downtrend formed and are all the EMAs, orange and blue lines (20 to 50, applied to high and low), sloping down on both the 15 mins and 1 hr time frames at the same time? An example is shown in the images above for USDJPY 15mins and 1 hr charts.

-Are the Awesome Oscillator bars below zero level and also red in color (or are the awesome oscillator bars crossing down at the zero level)?

Stop-Loss – place 5 to 10 pips above the highest 50 EMA blue color line.

Take profit – place at the next support level(s) on the higher time frame (1 hr time frame in this case)

 

Consolidation or Range Conditions

-Price moves within or around the eight EMAs

-Horizontal or flat alignment of all EMA lines

 

No Trade Conditions

-When all the eight EMAs on the two charts do not align in a trend/diagonal or sloping pattern.

-When there is no trend and all the eight EMAs are moving on a flat or horizontal level.

 

Buy Signal Conditions

The two conditions below must be met for a BUY trade to be placed;

-Did price cross and close above all the eight EMA lines?

-Is an uptrend formed and are all the EMAs, orange and blue lines (20 to 50, applied to high and low), trending up on both the 15 mins and 1 hr time frames at the same time? An example is shown in the images below for EURNZD 15mins and 1 hr charts.

-Are the Awesome Oscillator bars above zero level and also green in color (or are the awesome oscillator bars crossing up at the zero level)?

Stop-Loss – place 5 to 10 pips below the lowest 50 EMA orange color line.

Take profit – place at the next resistance level(s) on the higher time frame (1 hr time frame in this case).

 

Diagonal

Diagonal

 

Time Frame or Chart Setup Combination

The following time frames can be compared for EMA diagonal alignment;

-1 minute and 15 minutes time frames

-5 minute and 30 minutes time frames

-15 minutes and 1 hour time frames

-30 minutes and 4 hour time frames

-1 hour and daily time frames

-4 hour and weekly time frames

-daily and monthly time frames

 

Caution: Forex trading is risky. It is advisable that you acquire enough experience before you start to trade with real money. Do not invest in money that you cannot afford to lose (it is important that you study leverage, lot size, and money management in Forex trading very well before you execute your trade decision).

To trade in the Forex Market you must first sign up with a Forex Broker. There are lots of Forex Brokers out there that offer good service to their clients. Services include tight spread, partnership amongst others. My preferred brokers are 1. Alpari (https://alpari.com/en/?partner_id=1244646) and 2. FXTM (http://forextime.com/?partner_id=4806145). You may sign up through any of the partner links above. You may also send me a mail in case you need me to guide you on how to sign up and start trading (beanfxtrader@gmail.com).

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