Best 50 & 200 EMA Renko Street Channel Forex H4 Daily Trend Following Strategy

Best high profits trading with the 50 & 200 EMA for H4 and Daily time frame trading strategy – For traders looking for a trend following strategy, there is nothing better and simpler than using the 50 & 200 Moving Average.

Forex-50-200-EMA-Trading

One of the commonly used indicators, the Moving Averages form the basis for many different trends following strategies.

In this trading strategy, we make use of the 50 & 200 periods Exponential Moving Average applied to the 4-hour and daily charts. This strategy does not rely on the moving average cross over but rather enters the trend after it is established and exists for a quick profit.

The chart above shows the set up for this trading system and strategy. Once the chart is set up, we look for the following criteria:

  • SELL Bias: 50 EMA must have recently crossed over below the 200 EMA
  • BUY Bias: 50 EMA must have recently crossed over above the 200 EMA

The trading strategy is very objective but requires a bit of practice to identify the trade set ups.

  • Best Time Frames: H4 and Daily
  • Recommended Currency Pairs: GBPUSD, EURUSD, USDJPY, and All Major Pairs
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MetaTrader Trading Indicators
  • 50 Exponential Moving Average
  • 200 ExponentialMoving Average
  • Renko Street Channel
  • Tenkan-Sen Ichimoku Kinko Hyo
  • Signal Trend
  • Fisher
  • RSI
  • Trend Signal

 

BUY Rules

Forex-50-200-EMA-BUY

  • 50 EMA upward and above 200 EMA
  • Price must be trading at or above the 50 EMA
  • Price must make a high and then retrace back to make a low but stay above the 50 or 200 EMA
  • Fisher Yu4rik Green bars and above 0  level
  • RSI upward above 50 level
  • Green circle below the previous swing low

 

SELL Rules

Forex-50-200-EMA-BUY

  • 50 EMA downward and below 200 EMA
  • Price must make a low and then retrace back to make a high, contained within the 200 and 50 EMA
  • Fisher Yu4rik Red bars and below 0  level
  • RSI downward below 50 level
  • Red circle above the previous swing high
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Trading NOTES
  • Using the two Exponential Moving Averages and entering after the trend is established offers a low-risk trading strategy
  • The inbuilt risk management means that all the trades come with a minimum of 1:2 risk/reward trading strategy
  • Because the strategy is based on H4 chart or daily chart interval, the average holding period for the trades can be between a few days to a week at the most
  • The trading strategy is very objective but requires a bit of practice to identify the trade set ups



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