Moving average is very effective in Forex market and in this strategy we have used 21 moving average with MACD. Both indicators indicate about market trend and help to identify trend direction easily. In this strategy, you will learn how can you find trading signals using 21 EMA(exponential moving average) and MACD. This strategy can be used for both scalping and intraday. From Gbpusd M15 time frame, you can gain over 100 pips. So if you can catch the entry at right time, you will be lucky to gain more profit.
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1. 21 EMA (put value 21) Click here for 21 EMA setup process
2. MACD indicator Click here for MACD setup process
Buy Setup Rules
✪ First market price needs to cross 21 EMA from lower to upper.
✪ When 21 EMA upside breakout complete, then look at MACD indicator
✪ At the same time, if MACD stay above 0.0 level, then open buy entry.
✪ Set SL below moving average or set manually 15-25 pips
✪ Set TP 20-100 pips for every buy entry.
Sell Setup Rules
✪ First market price needs to cross 21 EMA from upper to lower
✪ When 21 EMA downside breakout complete, then look at MACD indicator
✪ At the same time, if MACD stay below 0.0 level, then open sell entry.
✪ Set SL above moving average or set manually 15-25 pips
✪ Set TP 20-100 pips for every sell entry.
Buy/Sell Setup Examples
In the above GBPUSD M15 chart, price cross 21 ema and MACD below 0.0 and then market price started falling. Over 100 pips was gained from this entry. On the 2nd setup, it was more profitable and gained 140 pips.
Time Frames: M5, M15, M30.
Currency Pairs: Any trendy pairs specially on gbpusd
Risk Warning: You should apply this strategy on London and US session. On slow market condition, you can't gain from this system. So practice this strategy on demo and if you can satisfied with this, then you can use this strategy on your real account.