This is a swing forex strategy using multiple exponential moving averages, for swing entry and exit, but also as a filter improving the success rate of the forex strategy tremendously.
Four EMAs are working in two tandems. One of them is reliably filtering out any trades going against the major trend. Second tandem works very well in finding suitable entry points and then staying in position for as long as necessary.
This swing forex strategy is relatively conservative. It was tested on last 3 years of tick data of AUDUSD. Stable lot size was used and strategy proved to be profitable. Moreover, we provide free expert advisor for this forex strategy. Results can be therefore easily tested and strategy modified to fit other currency pairs and timeframes.
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Used forex indicator
Exponential moving averages (trend filter). EMA (500,250) are used to filter out the major trend. All swing trades are entered only in the direction of general market flow. This is generalized by faster of the two EMAs trending below EMA500 in downtrend and vice versa for uptrend.
Exponential moving averages (swing entry signal). Position is only entered if confirmed by trend filter (500 and 250 EMA). We enter short on first candle after EMA 14 crossed EMA 21 downwards. Long trade is triggered by EMA 14 crossing EMA 21 upwards. Each crossing closes existing trade provided at least one candle manages to close.
Forex strategy rules
SELL
EMA 250 trending below EMA 500. Downwards market flow – downtrend.
EMA 14 crossing EMA21 from above sloping downwards. Position is entered on first candle close. Any existing long position will be closed.
Stop loss and take profit: EMA 14 and 21 crossing again.
SELL
EMA 250 trending below EMA 500. Downwards market flow – downtrend.
EMA 14 crossing EMA21 from above sloping downwards. Position is entered on first candle close. Any existing long position will be closed.
Stop loss and take profit: EMA 14 and 21 crossing again.
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.
