Double EMA (Exponential Moving Average) crossover strategy is easy and profitable. This crossover strategy is based on 200 and 15 EMA. 200 EMA is very important technical tool to identify market trend. So you can get signals according to the trend. As this is a trendy strategy, so success rate of this strategy is excellent. If you get a solid trend in h4 or daily time frame, then you can gain 500-1000 pips from one trade only.
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(1) 200 EMA
(2) 15 EMA
How to get buy signal
First you need to wait for crossover in the up direction. When 15 EMA crosses 200 EMA from below to upper, then you need to look for buy entry. After crossover if price moves rapidly, then you need to wait for some retracement. When price takes little retrace and touch 15 EMA like as below image, then you will get buy signal.
How to get Sell signal
For sell signal, you need to wait for crossover in the down direction. When 15 EMA crosses 200 EMA from upper to below in the down direction, then you have to look for sell entry. After crossover, you can take sell entry. But it is better to wait for little retracement and when price touches 15 EMA like as below image, then you will get sell signal.
Time frame: H1, H4, Daily. You can use on shorter time frame for scalping
Currency pairs: All pairs.
Take profit and Stop loss: For scalping take profit will be 30-40 pips. If you can use on h4 and daily, you can set 100-200 pips take profit. You should close half position when you get 100 pips, then you need to move stop loss at entry point. Then you can wait for more pips. If you can catch a solid trend, then you can gain 800-1000 pips in cross pairs like as above image.
You should give stop loss below or above recent support or resistance. You can put stop loss below 200 EMA for buy entry. Similarly you can set stop loss above 200 EMA for sell entry.
Risk warning: This EMA crossover strategy is suitable for trendy market. So you should not apply this strategy on ranging market area. You need to keep patience for more profit from this trendy trading strategy. You must follow money management theory for following this EMA crossover strategy. This is easy strategy, but you need to practice this on your demo account before applying this on your live account.