144 EMA Breakout Forex Strategy
The 144 EMA breakout forex strategy uses only one indicator to take informed buy and sell signals: the 144 period exponential moving average.
This strategy works best in a trending environment and on the larger time frame’s (less false signals).
Indicators: 144 EMA, BarTimer
Preferred time frame(s): 1 hour and above
Trading sessions: N/A
Preferred Currency pairs: Medium to high volatile currency pairs (GBP/USD, EUR/USD, USD/JPY, GBP/JPY, EUR/JPY,…)
GBP/USD Daily Chart
As shown in the GBP/USD chart above, it’s really easy to spot new trading opportunities.
Just wait for the candlestick to fully close above the 144 EMA from below for buy signals or fully close below the 144 EMA from above for sell signals.
- Criteria #1: Candlestick must fully close above the 144 EMA from below. (candlestick low price must close above the 144 EMA)
This is your buy entry. Place your stop loss 5 pips below the latest swing low.
Price Objective: Risk-to-reward 1:2 (i.e. risking 60 pips to make 120). Use a trailing stop.
- Criteria #1: Candlestick must fully close below the 144 EMA from above. (candlestick high price must close below the 144 EMA)
This is your sell entry. Place your stop loss 5 pips above the latest swing high price.
Price Objective: Risk-to-reward 1:2 (i.e. risking 75 pips to make 150). Use a trailing stop.