Forex strategy that employs moving averages with various periods to analyse existing trends with high level of competency. Moving averages are also used as tool for entry timing. Forex indicator RSI is used as an additional filter to confirm trend.
Currency: EURUSD, GBPUSD, GBPJPY, USDJPY
Timeframe: above 30 min
EMA (Exponential moving average) : 90, 21, 14,6,3
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
Forex strategy rules:
Price trending above EMA 90 (Major uptrend).
EMA 14 trending above EMA 21 (current uptrend).
RSI 21 above 50 (horizontal line).
Entry – EMA 3 crosses EMA 6 (upwards)
Price trending under EMA 90 (Major downtrend).
EMA 14 trending under EMA 21 (current downtrend).
RSI 21 under 50 (horizontal line).
Entry – EMA 3 crosses EMA 6 (downwards)
In both cases (SELL or BUY) we exit position when 14 EMA crosses 21 EMA again. It is important to also consider situation on RSI indicator and 90 EMA. In case of any sudden changes exit the position immediately or set up protective stop loss to protect your profits.