Forex EMA Channel Trend Following Strategy
Forex EMA Channel Trend Following Strategy:
Time Frame: 4H or daily.
Pairs: all.
In this system, we defined long and short entries and exits. We also did some setup work to calculate the moving averages and the entry points. The setups, entries, and exits are defined next.
Setup
a) Calculate the 4-, 12-, and 23-bar exponential moving averages (EMAs) of the currency’s closing prices.
b) Calculate a 50-bar EMA of the bond closes.
C) Calculate a 10-bar EMA of highs and a 10-bar EMA of lows.
Long Entry Position:
Check for the 4-bar EMA to be greater than it was one bar ago, for the 12-bar EMA to be above 23-bar EMA, for the 50-bar EMA and close price above the EMA 10 of highs .
Short Entry Position:
Check for the 4-bar EMA to be less than it was one bar ago, for the 12-bar EMA to be below
the 23-bar EMA, and for the 50-bar EMA and close price below the EMA 10 Low.
Exit Position
a) After we enter a position, we’ll set a money management stop and a trailing stop;
b) We’ll also exit our long position when the 12-bar EMA crosses below the 23-bar EMA; we’ll exit our short position when the 12-bar EMA crosses above the 23-bar EMA.
Stop Loss: When the price touches EMA 50.
Take Profit: 60 pips EUR/USD, 70 pips GBP/USD 4H Time Frame, for Daily time frame 200pips EUR/USD , 250 pips GBP/USD (recommended).
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 Channel Trend Following Strategy?
- Download Forex EMA Channel 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 Channel 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”.
