EMA (Exponential Moving Average) is very popular indicator for forex trading strategy. This strategy is made with EMA and CCI indicator. EMA crossover indicates the change of the market direction. In the trend direction, this strategy will give you big profit. So from this article, you will learn about simple trading strategy of 10 & 17 EMA crossover with CCI indicator.
1. CCI Indicator Click here for CCI Indicator setup process with basic strategy
2. 10 EMA (Set period as 10), 17 EMA (set period as 17) Click here for EMA setup process
Buy Entry Setup Rules:
✔Market price should start bullish rally.
✔Need to wait for crossover of 10 & 17 EMA from below to above.
✔10 EMA needs to cross 17 EMA in upward direction.
✔At the same time CCI needs to cross upper 100 band in the upward direction.
✔Slop of the moving average should be in uptrend.
✔After EMA crossover & CCI confirmation, need big bullish candle.
✔If all condition fulfills, then place buy entry after closing bullish candle.
Sell Entry Setup Rules:
✔Market price should start bearish rally.
✔Need to wait for crossover of 10 & 17 EMA from above to below.
✔10 EMA needs to cross 17 EMA in downward direction
✔At the same time CCI needs to cross lower -100 band in the downward direction.
✔Slop of the moving average should be in downtrend.
✔After EMA crossover & CCI confirmation, need big bearish candle.
✔If all condition fulfills, then place sell entry after closing bearish candle.
Example of Buy & Sell Setup:
In the above chart, we can see 10 & 17 EMA crossover and at the same time CCI moved below lower band. It confirmed this strategy and it gained some pips. Thus 2 examples were also profitable. So if we can follow the rules, then this strategy can be very successful.
For more pips, H1, H4 is perfect for this strategy. Lower time frame can be used for scalping.
All trendy pair.
Take profit and stop loss:
Take profit depends on time frame. For higher time frame, it can be 50-200 pips. Below H1, TP will be 20-80 pips.
Stop loss can be set as 25-60 pips. You can set Stop loss on swing high or low
This strategy will perform very badly on ranging market. So we need to avoid to use this strategy on range market. We need to follow proper money management during following this strategy on live account.
Submit Your Comments: