*** Forex system - EMA breakthrough

Sooner or later all Forex traders begin experimenting with different EMA settings. Quite often very interesting combination can be spotted.

Here is one Simple Forex system based on 50 EMA indicator.

Strategy Requirements:

Currency pairs: ANY

Time frame chart: 90 minute or 3 hour chart

Indicators: 50 EMA.

Entry: watch for a candle to pierce 50 EMA and finally close above (to enter Long) or below (to go Short). Enter with the second candle after it makes 5 pips higher than the previous one.

Exit: not set.

Stop loss order: 15 pips below 50 EMA.

Forex system - EMA breakthrough

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Advantages: very simple approach and can give good profitable entries. Traders may want to change MACD default settings depending on the currency and chosen time frame. For example, traders may test next MACD set ups: USD/CHF MACD (04, 07, 16), EUR/USD MACD (02, 03, 20), GBP/USD MACD (02, 03, 04) for different time frames.

Disadvantages: you will need to sit and monitor it again and again. MACD has little use in sideways trading market. It is also never used alone, but rather in combination with other indicators.