EMA crossover is one of simple scalping trading strategy for beginners. In this simple trading system, 2 EMA (exponential moving average) will be used to get buy/sell signals. 5 EMA is considered as fast moving average and 15 EMA is considered as slow moving average in this strategy. With the crossover of these 2 EMA, we will find trading signal. This strategy can be used for trendy market situation where traders can get 10-50 pips easily from any signal.
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1. 5 EMA (put value 5) Click here for 5 EMA setup process
2. 15 EMA (put value 15) Click here for 15 EMA setup process
Buy Setup Rules
✪ First 5 EMA need to cross 15 EMA in the upward direction.
✪ When crossover complete, wait for closing the bullish candle.
✪ Open buy position after successful upward crossover.
✪ Stop loss will be below the support level or set SL as 15-20 pips
✪ Take profit will be 15-60 pips for every buy entry.
Sell Setup Rules
✪ First 5 EMA need to cross 15 EMA in the downward direction.
✪ When crossover complete, wait for closing the bearish candle.
✪ Open sell position after successful downward crossover.
✪ Stop loss will be above the resistance level or set SL as 15-20 pips
✪ Take profit will be 15-60 pips for every sell entry.
Buy/Sell Setup Examples
In the above USDJPY M15 chart, we can observe that 5 EMA advances above 15 EMA and produce buy signal. Similarly, sell signal was produced by 5 & 15 crossover. After crossover, price moved according to the signal direction.
Time Frames: M5, M15, M30.
Currency Pairs: Any trendy pairs.
Risk Warning: It is prohibited to use this strategy during news time or into ranging market. This strategy will work on trend following situation. So before using on real account, use this strategy on demo with proper money management.