EMA and CCI versatile FOREX strategy

This forex strategy uses combination of three moving averages to identify trend, while avoiding late entry before the trend reversal. All positions are entered in the direction of trend using standard forex oscillator – CCI (commodity channel index). Indicator is used with short calculation period, to give us more frequent entries with relatively tight stop loss.

 

Trade is entered on bullish candle in downtrend and on bearish candle in uptrend. Entry on candle close, is therefore done on statistically better price, allowing us to use tight stop at all times. Stop loss will depend on signal candle size.

Strategy was tested for profitability and free expert advisor is available to test it on your own with different settings.

 

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.

 

Used forex indicators:

  • EMA (exponential moving averages) with periods 500,100 and 50 are used.  The Slowest period EMA 500 provides us with information regarding the major trend. If are both 100 and 50 EMA trending below it we are dealing with a downtrend. If they both trend above EMA 500 it will be considered to be an uptrend. All three of moving averages need to bee properly aligned for us to consider an entry in the direction of trend.

  • CCI (commodity channel index). CCI (7) provides us with entry signal. CCI rising above 100 – sell. CCI falling below -100 buy. Range of a signal candle will be used for stop loss target.

  • Apply both indicators in 1H chart of EURUSD.

 

SELL

All EMA aligned according to downtrend from slowest to fastest at the bottom.

 

CCI rising above 100 line as the bullish candle closes. We enter the trade immediately on candle close. Range of signal candle (from low to high) is used as a stop loss distance. 

After trade moves to profit of 10 pips - place stop loss to break even position.

Take profit: 20 pips.

 

BUY

All EMA aligned according to uptrend from slowest to fastest at the top

 

CCI falling below -100 line as the bearish candle closes. We enter the trade immediately on candle close. Range of signal candle (from low to high) is used as a stop loss distance.

After trade moves to profit of 10 pips - place stop loss to break even position.

Take profit: 20 pips.

 

Notes: Above mentioned setting are just a one o the few that can work on currency market. Use free EA to test it rapidly for other currency pairs and timeframes.

We recommend you to use this forex strategy with one of our trusted forex brokers (STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

Dislaimer:  Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer.

TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use. 

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