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Cross EMA100 Forex Trading Strategy

Amandeep Sonewane | Sep. 5, 2019
Cross EMA100 Forex Trading Strategy

You can now download the Cross EMA100 Forex Trading Strategy for free on AtoZ Markets indicators gallery.

The idea behind this strategy is to trade based on the agreement of the intermediate or long-term trend and the short-term trend signal as provided by the QQE indicator.

For our intermediate or long-term trend, we will be using the commonly used 100 Exponential Moving Average (EMA). This moving average parameter is popular among traders and because of that, many traders look at it for guidance as to the direction of their trades. By trading in the same direction as the bulk of the market, we increase our chances of having profitable trades.

As long as the price is above the 100 EMA, we will only be taking buy trades. If the price is below the 100 EMA, then we will only be taking sell trades.

As for our short-term trend signal, this will be determined by the location of the QQE in relation to its midline, which is 50. However, it wouldn’t be wise to be taking just about any buy trade when QQE is above 50 or sell anytime the QQE is below 50. We just don’t know when the price might reverse especially when the short-term trend has run for quite some time and may already be overextended. Instead, we will be trading only when the QQE crosses 50 in the direction of the long-term trend based on the 100 EMA.

How to trade with Cross EMA100 Forex Trading Strategy?

Buy Trade Setup

Entry

  • 100 EMA (green): price should be above the 100 EMA
  • Enter a buy market order as soon as the QQE crosses above 50

Stop Loss

  • Set the SL at the fractal below the entry price

Take Profit

  • Take profit target at 2X the risk on the SL

Sell Trade Setup

Entry

  • 100 EMA (green): price should be below the 100 EMA
  • Enter a sell market order as soon as the QQE crosses below 50

Stop Loss

  • Set the SL at the fractal above the entry price

Take Profit

  • Take profit target at 2X the risk on the stop loss

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Cross EMA100 Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.