3 EMAS STRATEGY
Definition
| Time Frame | Currency Pairs | Indicators |
|
15min or Higher |
ALL |
3 EMA (Exponentiel Moving Average)
13 EMA 144 EMA |
Long Entry
The price should :
- be above the 144 EMA
- The price should be above the 13 EMA
- The price should be above the 3 EMA
- When the 3 EMA comes from below the 13 EMA to above it, this is a signal to enter a long trade.
- Open a long trade at the start of the next candle
- Place a stop-loss order at the most recent lows
- Exit the trade when the 3 EMA crosses below the 13 EMA (optional)
Short Trade
The price should :
- be below the 144 EMA
- The price should be below the 13 EMA
- The price should be below the 3 EMA
- When the 3 EMA comes from above the 13 EMA to below
- This is a signal to enter a short trade.
- Open a short trade at the start of the next candle.
- Place a stop-loss order at the most recent highs
- Exit the trade when the 3 EMA crosses above the 13 EMA (optional)
Exemple
The screenshot above is showing a short trade. (Point A) is where the 3 EMA (Green Line) crosses over the 13 EMA (Pink Line) to the down side thus generating a sell signal to go short because they were both below the 144 EMA (Black Line).The trade would have been exited at point B.The second part of the 3 EMA trading system is when both of the shorter moving averages cross over the 144 EMA at roughly the same time (within a few candles). 13 crossing the 144 This part of the system involves watching for the 13 and 144 EMAs crossing over the 144 EMA, whether above or below (long or short positions). This might be a very good trading opportunity.
Exit Position
Exit 1: Have a predetermined target; either at least the same amount as you are risking or twice or 3 times the risk.
Exit 2 : Follow the trade by moving your stop-loss order as the price makes pull-back highs, (short trades – opposite for long trades) each time a new pull-back high is made ride the trade down.
Exit 3: Employ a trailing stop.
