This strategy is an easy Exponential Moving Average trading strategy that traders can use on a daily basis. It combines two Meta Trader indicators to determine trade entry and exit signals. The indicators are Exponential Moving Averages EMA and Awesome Oscillator.
Find below the EMA settings, also see the images below for the necessary conditions that determine when to buy or sell for any currency pair.
The EMAs are five in number;
-20 EMA, Apply to Low, Red color
-20 EMA, Apply to High, Green color
-40 EMA, Apply to Close, Purple color
-50 EMA, Apply to High, Orange color
-50 EMA, Apply to Low, Lime color
-Awesome Oscillator (default setting)
BUYING ENDS, CONSOLIDATION, AND SELLING STARTS:
SELLING ENDS, CONSOLIDATION, AND BUYING STARTS:
How It Works
Sell Signal Conditions:
The two conditions below must be met for a SELL trade to be placed;
-Are the Orange and Red EMAs expanding outward leaving the Purple, Green and Lime EMAs in the middle?
-Are the Awesome Oscillator AO bars below zero level and also red in color (or did the awesome oscillator bars just cross down at the zero AO level)?
Consolidation or Range Conditions:
-Price moves within or around all the five EMAs
-Horizontal or flat alignment of all EMA lines
-Price revolves around the Purple EMA.
No Trade Conditions:
-When all five EMAs do not align in a trend/diagonal or sloping pattern.
-There is no trend and all the five EMAs are moving on a flat or horizontal level.
-When price ranges around the Purple EMA.
Buy Signal Conditions:
The two conditions below must be met for a BUY trade to be placed;
-Are the Lime and Green EMAs expanding outward leaving the Purple, Red and Orange EMAs in the middle?
-Are the Awesome Oscillator AO bars above zero level and also green in color (or did the awesome oscillator bars just cross up at the zero AO level)?
-Exit Buy trade when both Orange and Red EMAs expand outward and Awesome Oscillator bars cross down at the zero level.
-Also, exit Sell trade when both Lime and Green EMAs expand outward and Awesome Oscillator bars cross up at the zero level.
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 (email@example.com).