However, many traders keep on jumping from one strategy to another and end up quitting. What about you? Are you still in search of the best Forex trading strategy fitting your needs? After trying many I believe that less is more.

You probably wonder what I mean!? In short, I believe the fewer indicators you use the better results you can get. Yagub Rahimov developed a simple strategy a few years back based on EMA applied to the median on the daily time frame. The Logic for this system is too simple. If the EMA is sloping down, price bouncing off the daily EMA and the stochastic oscillator bounced off the 80 zone, place a sell order.

SL must be above the most recent highest high and TP should be 1. Simply, follow the trend principles: buying low, and selling high. Also, if you can catch the major market move, this EMA trading strategy will let you execute large swing trade entries. Is it in the same trend as the daily chart? Step 3: next is you switch to the 1hr chart and check if the 1hr chart is in the same trend as the daily and the 4hr charts.

200 EMA Forex Trading Strategy

Then wait for price to come to the ema and then you trade the bounce of price on the ema line. The chart below shows how:. Check Out My: Free Price Action Trading Course Many new forex traders may find it difficult to identify what the main trend is…and if the market is in an uptrend or downtrend.

As the name implies, the EMA trading strategy is based on the Exponential Moving Average set with a period of The EMA is a long-term indicator, which means it will help you identify and trade with the long-term trend. The basic trend principle to remember is to buy low and sell high.

Also, if you are able to spot major market movements, EMA will help you execute positions based on large swings.

The first step is to set the chart with the EMA. Note that this trading strategy is a multi-time frame one, so in this case, you will need a daily chart, 4-hour chart, and 1-hour chart. Now that the EMA is already set, you should identify the trend in the daily chart.

Basically, the main principle is that if the price is below the EMA line, then it is a downtrend. The steeper the EMA slopes, the stronger is the trend. On the other side, when the price is above the EMA line, then it is an uptrend.

In this case, the daily chart is used to identify the main trend. The next step is to confirm the trend in the shorter time frames. Now shift to the 4-hour chart and see where the EMA is relative to the price. In this case, you would want to look for the EMA correlations with the daily chart. If you can see that there is a clear correlation, switch to the 1-hour chart and repeat the process.

Make sure that the EMA has the same trend as in the two previous time frames. If the correlation is present in all three time frames, then it is a good time for you to open a position in the 1-hour chart. Also, make sure to use the principle of buy low and sell high as we have previously mentioned. As an addition, you can add stochastic with a setup of 14, 3, and 5 to your chart.

The stochastic indicator is essentially used to identify oversold and overbought conditions. In this case, when the stochastic levels hit 80, that means too many traders have invested and the prices are more likely to move lower.