EMA Band Forex Trend Following Strategy
This is a trend following trading system based on a set of EMA filtered by filter RSI indicator and MACD indicator with EMA.
The setting is for MT4 users because the indicator are only available for MT4. This works on a 15 minute timeframe or higher and applicable in any currency pairs.
MT4 Indicators:
- Set of EMAs from fast 5 EMA to slow 21 EMA.
- RSI filter (7 period);
- MACD with EMA periods (10, 20, 3, 7,).
Standard Platform for trading forex indicators:
- Set of EMA from fast 5 EMA to slow 21 EMA.
- RSI (9 period);
- MACD periods (5, 26, 1,).
Rules for EMAs band with RSI filter:
Buy Entry:
- 5 EMA Fast above 21 EMA slow;
- RSI filter red bars;
- MACD with EMA is greater than 0.
Sell Entry:
- 5 EMA Fast above 21 EMA slow;
- RSI filter red bars;
- MACD with EMA greater than 0.
Rules for EMAs band with standard platform and RSI filter:
Buy Entry:
- MACD should be above the 00 line;
- RSI must be below 70 line or above 30 line;
- Candle must be close above EMA area;
- Red or blue EMA must be clear in the chart. (not covered by other EMA).
Sell Entry:
- MACD should be below 00 line
- RSI must be above 30 or below 70 line
- Candle must close below the EMA area
- Red or Blue EMA must be clear in the chart.( not covered by other EMA)
Exit position:
Exit when 5 EMA fast is below 21 EMA slow. This is for Long.
Exit when 5 EMA Fast is above 21 EMA slow. This is for Short.
Initial Stop loss on the previous swing after n-pips in gain. N-pips= the numbers of the pips from entry point at the stop loss. Move stop loss at the entry point or more.
Profit Target, ratio 1.5 stop loss or you can close trade when candle close inside the EMA area.
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