Simple Profitable Forex Exponential Moving Average (EMA) Trading Strategy

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.


Simple EMA Trading Strategy


Time Frame: 30 min.
Currency pairs: Majors.


Tools Indicators:
  1. Exponential Moving average 20 period close (measures the short trend-momentum ).
  2. Exponential Moving average 50 period close ( identifies the intermediate trend ).
  3. Exponential Moving average 60 period close ( identifies the intermediate trend ).
  4. Exponential Moving average 200 period close ( identifies the long-term direction).
  5. Filter (setting 240 min)
  6. Awesome oscillator.
  7. Info (main informations on the price movement).
  8. Sipper Indicator


EMA Forex Trading Rules


Trade only in the direction of the trend.


Buy Rules
  • 12 EMA >50EMA>60EMA>200EMA
  • Trend Filter green bar.
  • Avesome green bar.
  • Sipper green bar.


Sell Rules
  • 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.


Exit Position
  • Profit Target ratio 1:1, 1:2 stop loss.
  • Initial stop loss 8 pips above/below 200 ema.

Leave a Reply

Your email address will not be published. Required fields are marked *