Forex EMA Bands Trend Following Strategy
Forex EMA Bands Trend Following Strategy;
This is a trend following trading system based on a set of exponential moving averages filtered by filter RSI indicator and MACD indicator with EMA.
This setting is for those who use a metatrader 4 platform as it has these indicators. For traders who did not have these available indicatiors I have a setting with standard indicators: exponential moving averages, MACD and RSI (default).
Time Frame 15 min or higher.
Currency pair : any,
Metatrader indicators:
Set of Ema’s from fast 5 period exponential moving average color Dark Blu to at slow 21 period exponential moving average color dark blue);
RSI filter (7 period);
MACD with EMA periods (10, 20,3, 7,).
Standard Platform for trading forex indicators:
Set of Ema’s from fast 5 period exponential moving average color Dark Blu to at slow 21 period exponential moving average color aqua);
RSI (9 period);
MACD periods (5, 26,1,)
Rules for EMA’s Bands with RSI filter
Buy conditions:
5 EMA Fast above 21 EMA slow;
RSI filter red bars;
MACD with EMA >0.
Sell conditions:
5 EMA Fast above 21 EMA slow;
RSI filter red bars;
MACD with EMA >0.
Rules for EMA’s Bands with RSI filter with standar trading platform
Buy Conditions:
- 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 Conditions:
- MACD should be below 00 line
- RSI must be above 30 or below 70 line
- Candle must close below the EMA areaRed or Blue EMA must be clear in the chart.( not covered by other EMA)
Exit position options
For buy when 5 EMA fast is below 21 Ema slow.
For Sell when 5 EMA Fast is above 21 Ema slow.
Initital Stop loss on the previous swing after n-pips in gain (n-pips= the nubers of the pips from entry point at the stop loss) move stop loss at the entry poiont or more.
Others optios for make profit:
Profit Target, ratio 1.5 stop loss or you can close trade when candle close inside the ema area.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex EMA Bands Trend Following Strategy?
- Download Forex EMA Bands Trend Following Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex EMA Bands Trend Following Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
