These three EMAs will be our basis in determining if the market is trending, the trend direction and the entry trigger.
To determine if the market is trending and trend direction, we will be needing the 30 & 60 EMA. To determine a bullish trending market, we will be looking for the 30 EMA to above the 60 EMA. On the other hand, on bearish market, it will the 60 EMA above the 30 EMA.
Then, to determine our entry trigger, we will be using the 15 EMA, 30 EMA, and price itself. In a bullish market, what we will be looking for is for price to crossover from in between the 15 & 30 EMA to outside and above the 15 EMA. In a bearish market, we will be looking for price to cross below the 15 EMA.
As an additional filter, we will need to determine if there is not reversal pressure on our trade. To determine this, we will be using the 30 EMA. Price should never close beyond the 30 EMA against our determined trend direction.
Indicators:
- 15 EMA (gold)
- 30 EMA (green)
- 60 EMA (brown)
Timeframe: any
Currency Pair: any
Trading Session: any
How to trade with Three EMAs MT4 Forex Trading Strategy?
Buy Entry
- 30 EMA should be above the 60 EMA
- Price should never close below the 30 EMA
- Price should cross from between the 15 & 30 EMA to close above the 15 EMA
- Enter a buy market order at the close of the candle
Stop Loss: Set the stop loss at the fractal below the entry
Take Profit: Set the take profit at 2x the risk on the stop loss
Sell Entry
- 30 EMA should be below the 60 EMA
- Price should never close above the 30 EMA
- Price should cross from between the 15 & 30 EMA to close below the 15 EMA
- Enter a sell market order at the close of the candle
Stop Loss: Set the stop loss at the fractal above the entry
Take Profit: Set the take profit at 2x the risk on the stop loss
How to download and install an indicator
In order to install the indicator on your MT5 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT5>Indicator folder of the MetaTrader5 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Three EMAs MT4 Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by Jack. AtoZ Markets does not carry any copyrights over this trading tool.
