Forex Exponential Moving Average is a strategy for trading with the trend. This forex system is an intraday strategy based on trend momentum indicators.
DEFINITION of ‘Exponential Moving Average – EMA’ – A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as “exponentially weighted moving average”.
BREAKING DOWN ‘Exponential Moving Average – EMA’ – This type of moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.
Time Frame: 30 min.
Currency pairs: Majors.
- Exponential Moving average 20 period close (measures the short trend-momentum ).
- Exponential Moving average 50 period close ( identifies the intermediate trend ).
- Exponential Moving average 60 period close ( identifies the intermediate trend ).
- Exponential Moving average 200 period close ( identifies the long-term direction).
- Filter (setting 240 min)
- Awesome oscillator.
- Info (main informations on the price movement).
- Sipper Indicator
Trade only in the direction of the trend.
- 12 EMA >50EMA>60EMA>200EMA
- Trend Filter green bar.
- Avesome green bar.
- Sipper green bar.
- 12 EMA <50EMA<60EMA<200EMA
- Trend Filter red bar.
- Avesome red bar.
- Sipper red bar.
Info indicator: optional.
Re-emtry when the price come back on the 40 EMA with the same conditions.
- Profit Target ratio 1:1, 1:2 stop loss.
- Initial stop loss 8 pips above/below 200 ema.