EMA and MACD both are powerful trading indicator in Forex market. Both indicators suggest about the market trend. So traders will get signal from this strategy in the trend direction. This strategy will be profitable on higher time frame. Traders can gain 50-300 pips from one signal from this strategy.
2. 25 EMA (Apply to high)
3. 25 EMA (Apply to low)
Buy Setup Rules:
✔First MACD needs to cross 0.0 level from lower to upper
✔Market price needs to break both 25 EMA (high & low) in the upside direction.
✔If both conditions fulfill, then enter buy position after bullish candle.
✔Market price should break 25 EMA with big bullish candle.
Sell Setup Rules:
✔First MACD needs to cross 0.0 level from upper to lower.
✔Market price needs to break both 25 EMA (high & low) in the downside direction.
✔If both conditions fulfill, then enter sell position after bullish candle.
✔Market price should break 25 EMA with big bearish candle.
Example of Buy & Sell Setup:
In the above example of GBPUSD H4, we can see both buy and sell setup of this strategy. In the first setup, both EMA and MACD fulfills the buy setup rules and moved 330 pips. On the chart, we can see 4 buy-sell setup and all are profitable. So this startegy can be very profitable if you can catch all the trades according to the rules.
H1 & H4 is preferable
Take profit and stop loss:
Take profit should be set at least 50 pips. If you get 100+ pips profit, then you can hold this trade for further profit as we can see on above example of 330 pips.
Stop loss will be 40-60 pips. You can also set SL near to support & resistance level.
You will get good result from trendy pair. In ranging market, you should not use this strategy. Always follow money management during applying this ema and macd strategy.
If you face any problem to setup required indicator, then contact with us at [email protected]
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