The indicators we would be using are the Octopus indicator. These are indicators that attempt to point the trend direction bias of the market. These two indicators will serve as our primary trend direction filter. Green bars indicate a bullish market while red bars indicate a bearish market. To qualify as a trade setup, both indicators should point in the same direction.
Then, for our actual entry point, we will be using the crossover of two Exponential Moving Averages (EMA), a 13-period and 55-period EMA.
Indicators:
- Octopus 1 (default parameters)
- Octopus 2 (default parameters)
- 13-period EMA (green)
- 55-period EMA (brown)
Timeframe: 1-hour, 4-hours and daily timeframe
Currency Pairs: any
Trading Session: any
Like the Octopus indicator and want to try it out? Do it with an AtoZ Approved broker for free:
How to trade with EMA Reversal Swing MT4 Forex Trading Strategy?
Buy (Long) Trade Setup
Entry
- The Octopus 1 and Octopus 2 custom indicators should be printing green bars indicating that the market has bullish tendencies.
- Wait for the 13-period EMA to cross above the 55-period EMA.
- Enter a buy market order at the close of the candle corresponding to the crossover.
Stop Loss
- Set the stop loss at the swing low below the entry candle.
Exit
- Manually close the trade at the close of the candle corresponding to the change of color of any of the Octopus custom indicators from green to red.
Sell (Short) Trade Setup
Entry
- The Octopus 1 and Octopus 2 custom indicators should be printing red bars indicating that the market has bearish tendencies.
- Wait for the 13-period EMA to cross below the 55-period EMA.
- Enter a sell market order at the close of the candle corresponding to the crossover.
Stop Loss
- Set the stop loss at the swing high above the entry candle.
Exit
- Manually close the trade at the close of the candle corresponding to the change of color of any of the Octopus custom indicators from red to green.
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the bottom of the post.
- Save the file to your computer.
- Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “EMA Reversal Swing MT4 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.
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