Fast Exponential Moving Average (EMA) Foreign Exchange Strategy

The fast exponential moving averages foreign exchange strategy is established on fast exponential moving averages.

Features

1. 5 exponential moving average (5 EMA), 12 exponential moving average (12 EMA) and 32 exponential moving average (32 EMA) are the only indicators utilized in this trading strategy.

2. The recommended time frame for utilizing this technique is one hour and above.

3. Applicable on all endorsed trading sessions.

4. The recommended currency pairs are EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/JPY EUR/JPY and GBP/JPY.

The GBP/USD Hourly Instance Chart

fast-exponential-moving-average-ema-foreign-exchange-strategy

Purchase Conditions

1. 12 EMA bypasses 32 EMA from beneath.

2. 5 EMA bypasses 32 EMA and 15 EMA from beneath.

Begin a purchase exchange and immediately position stop beneath the most current support zone

Price objective technique 1: End the purchase trade when 5 EMA bypasses the 12 EMA from on top (short term bearish).

Price objective technique 2: End the purchase exchange when you get a valid auction trade (not endorsed).

Price objective technique 3: End the exchange for one hundred pips (hourly chart), 225 pips (4 hr chart).

Price objective technique 4: Utilize risk to reward ratio technique (i.e. risking 50 pips to earn 100).

The exchanging chart on top provided us with three simple to identify trading signals. The first purchase order was ended for one hundred pips, the 2nd auction order was ended for one hundred pips and the 3rd purchase exchange is still open (price objective technique 2).

Auction Rules

1. 12 EMA bypasses 32 EMA from beneath.

2. 5 EMA bypasses 32 EMA and 12 EMA from on top.

Begin an auction exchange and immediately position stop on top of the most current resistance zone.

Price objective technique 1: End the auction exchange when 5 EMA bypasses the 12 EMA from beneath (short-term bullish).

Price objective technique 2: End the purchase exchange when you get a valid purchase exchange (not endorsed).

Price objective technique 3: End the exchange for one hundred pips (hourly chart), two hundred and twenty five pips (4 hour chart).

Price objective technique 4: Utilize risk to reward ratio technique (i.e. risking sixty pips to gain one hundred and twenty pips).

Danger-SignUtilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with utilizing any strategy presented on the site. It’s not recommended to utilize this strategy on the real account without testing it on demo first.

 

 

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About The Author

Mike N

Financial Trading Systems Design Expert

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