This 200 EMA And 15 EMA crossover trading strategy is a trend trading system that uses two exponetial moving averages, the 200 ema and the 15 ema.
The 200 ema acts as a filter in that you will only look to take buy trades when price is above the 200 ema line. Or you will only look to take sell trades when the price is below the 200 ema line.
The 15 ema is the indicator that signals a buy or a sell when price comes back to it and touches it.
Price must be above the 200 ema line
15 ema crosses 200 ema and goes up
wait for price to come back down to touch the 15 ema
look for bullish reversal candlesticks to go long when price touches the 15 ema by placing buy stop pending order at least 2 pips above the high of a bullish reversal candlestick.
place stop lost at least 2 pips below the nearest swing low.
for take profit, use the previous swing high point…if none is available, aim for a risk:reward of 1:2 or more.
Price must be below the 200 ema line
15 ema crosses 200 ema and goes down
wait for price to go back up to touch the 15 ema
look for bearish reversal candlesticks to go short when price touches the 15 ema by placing sell stop pending order at least 2 pips below the low of the bearish reversal candlestick.
place stop lost at least 2 pips above the nearest swing high.
for take profit, use the previous swing low point…if none is available, aim for a risk:reward of 1:2 or more.
in a ranging market, there’s going to be a lot of false signals
ema’s a lagging indicators…price moves ahead before a sell or a buy signal is generated later.
easy trading system to understand and follow
in a strong ranging market this trading system can make you a lot of pips.
this is a good swing trading system
risk:reward of this forex system is also good
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