Double EMA Channel Forex Trading Strategy

The Double EMA Channel Forex trading strategy, as the name suggests is a very simple trading strategy that employs the use of two exponential moving averages.

This strategy is known to work great for swing trading, scalping and intraday trading.

In other words, our strategy works in both bigger and smaller time frames.

This strategy will first look for signs that a real trend is present before allowing you jump into the market.

Chart Setup

MetaTrader4 Indicators: begashole-indicator.ex4 (Inputs Variable Modified; HOLE1_EMA_period=45, HOLE2_EMA_period=55, Colors Width Modified; #0=2, #1=2), natuseko-protrader.ex4 (Colors Modified; #1=None, #2=None, #3=None)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Download the Double EMA Channel Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If price trades above the aqua colored bars of the begashole-indicator (see Fig. 1.0), price is said to be pressured to the upside i.e. a trigger to go long on the specified currency pair.
  2. If the silver histograms & red line of the natuseko-protrader Metatrader 4 custom indicator aligns above the 0.00 center line as shown on Fig. 1.0, the overall market sentiment is said to be bullish, therefore a buy will suffice.

Stop Loss for Buy Entry: Place stop loss below the most recent swing low.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1. If price opens and closes below the aqua colored bars of the begashole-indicator as seen on Fig. 1.0, bullish pressure s is said to be diminishing, therefore an exit or take profit is recommended.
  2. If the red line of the natuseko-protrader indicator dips below the 0.00 horizontal level while a bullish trend is running, a bearish reversal is said to be underway, therefore an exit or take profit will do.

Sell Entry Rules

Go short if the following setups gets displayed rightly on the activity chart:

  1. If price trades below the aqua colored bars of the begashole-indicator (refer to Fig. 1.1), price is said to be pushed lower, hence a sell trigger is said to be imminent.
  2. If the silver histograms & red line of the natuseko-protrader custom indicator aligns below the 0.00 center line as depicted on Fig. 1.1, the general market sentiment is said to be bearish, thus a trigger to go short on the selected forex pair.

Stop Loss for Sell Entry: Place stop loss above the most recent swing high.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If price opens and closes above the aqua colored bars of the begashole-indicator as shown on Fig. 1.1, bears power is said to be weaning, therefore an exit or take profit is advised.
  2. If the red line of the natuseko-protrader forex indicator surges above the 0.00 horizontal level while a bearish trend is ongoing, a bullish reversal is said to be looming, thus a signal to exit or take profit at once.

Sell Trade Example

Fig. 1.1

Free Download

Download the Double EMA Channel Forex Trading Strategy

About The Trading Indicators

The begashole-indicator.ex4 is built on two exponential moving averages and is known to work great in trending market environments.

The natuseko-protrader.ex4 indicator is an implementation of Bollinger bands superimposed on the MACD.

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