EMA and Moving Average Trading Systems: 5 Forex Strategies

These five systems use exponential moving averages or moving-average channels as their core: EMA bands, predictive EMAs, a 55 EMA retracement method and a centre-of-gravity channel. Moving averages define the trend; the systems differ in how they time entries inside it. Compare the rules below, and see our moving averages guide for the basics.

These systems were collected from public trading forums and are explained here for education. They have not been independently backtested; results depend on spreads, execution and discipline.

The Systems at a Glance

System	Timeframe	Main indicators
C5 Trading System	5m	Pivots Daily, Weekly, Monthly #1 & #2, EMA 34 (blue), EMA 55 (red)
Forex Scalp Retracement Trading System	5-minute entries, 1-hour trend	55 EMA, MACD (4, 9, 6), Fibonacci retracement
EMA's Band Scalp Trading System	M1 (also M5, M15 with wider stops/targets)	EMA 50 (High), EMA 50 (Low), EMA 50 (Close)
Scalp with EMA Predictive 1 min chart line	M1	EMA Predictive (long 25, short 8), EMA Predictive (long 50, short 15), EMA Predictive (long 100, short 100)
Centre of Gravity Trading System	H1 or higher (H4, Daily preferred)	Centre Of Gravity (channel), MA Cross OC (arrow signals)

C5 Trading System

5-minute trend system: price pulls clearly to one side of EMA 34/55, confirmed by MACD, Stochastics and CCI; pivots used for stops and targets.

Timeframe	5m
Pairs	All
Indicators	Pivots Daily, Weekly, Monthly #1 & #2, EMA 34 (blue), EMA 55 (red), Stochastic 8,0,3, Stochastic 13,0,3, MACD lines 34,89,34, CCI 50

Buy rules:

1. Price pulls clearly above EMA 34 and EMA 55
2. EMA 34 above EMA 55
3. MACD in buy mode, preferably above zero line
4. At least one Stochastic recently oversold at 20 and heading up
5. CCI preferably above 50 (optional)

Sell rules:

1. Price pulls clearly below EMA 34 and EMA 55
2. EMA 34 below EMA 55
3. MACD in sell mode, preferably below zero line
4. At least one Stochastic recently overbought at 80 and heading down
5. CCI preferably below 50 (optional)

Stop-loss: At last obvious swing point or 55 pips; pivots also used for stop placement.

Exit: Take profit at pivot levels; exit early if indicators give a full reversal signal.

Forex Scalp Retracement Trading System

Hourly 55 EMA and MACD define trend; enter on 5-minute chart at 38.2%/50% Fibonacci retracements or hourly high/low breakouts.

Timeframe	5-minute entries, 1-hour trend
Pairs	GBP/USD, EUR/JPY
Indicators	55 EMA, MACD (4, 9, 6), Fibonacci retracement

Buy rules:

1. Hourly close above 55 EMA
2. Last closed hourly candle bullish
3. Hourly MACD histogram shows positive divergence or higher low
4. Draw Fibonacci from hourly swing low to swing high
5. Scenario A: 5-min candle dips below 38.2%/50% level but closes above it
6. Scenario B: if no retracement, buy break of previous hourly candle high

Sell rules:

1. Hourly close below 55 EMA
2. Last closed hourly candle bearish
3. Hourly MACD line crosses below signal, histogram red
4. Draw Fibonacci from hourly swing high to swing low
5. Scenario A: 5-min candle pokes above 38.2%/50% level but closes below it
6. Scenario B: if no retracement, sell break of previous hourly candle low

Stop-loss: Beyond the 61.8% Fibonacci level or recent swing extreme; risk max 1% per trade.

Exit: Target prior swing high/low; minimum 1:1.5 reward-to-risk.

EMA's Band Scalp Trading System

Trend-following M1 scalping: trade pullbacks into a 50 EMA band in the direction set by the 100 EMA, timed with Stochastic crosses.

Timeframe	M1 (also M5, M15 with wider stops/targets)
Pairs	EUR/USD, GBP/USD, AUD/USD
Indicators	EMA 50 (High), EMA 50 (Low), EMA 50 (Close), EMA 100 (Close), Stochastic (14,3,3)

Buy rules:

1. 50 EMA band above the 100 EMA, angled upward.
2. Wait for price to pull back toward the three 50 EMAs.
3. Stochastic leaves oversold, crossing up through about 30.
4. Enter long as price holds the band and resumes upward.

Sell rules:

1. 50 EMA band below the 100 EMA, angled downward.
2. Wait for price to rally back up toward the three 50 EMAs.
3. Stochastic leaves overbought, crossing down through about 70.
4. Enter short as price rejects the band and resumes downward.

Stop-loss: About 3 pips beyond the outer 50 EMA: below lower EMA for longs, above upper EMA for shorts.

Exit: Take profit at 7-12 pips or more if momentum strong; optionally trail stop behind the band.

Scalp with EMA Predictive 1 min chart line

M1 line-chart scalping system using three predictive EMAs; trade when the 25 EMA crosses both the 50 and 100 EMAs during London or New York open.

Timeframe	M1
Pairs	Majors such as EUR/USD, GBP/USD, USD/JPY, USD/CHF; max spread 2.5 pips
Indicators	EMA Predictive (long 25, short 8), EMA Predictive (long 50, short 15), EMA Predictive (long 100, short 100), Line chart

Buy rules:

1. 25 EMA crosses up through both 50 EMA and 100 EMA.
2. Line-chart price trades above all three EMAs.
3. Trade during London open (3:00 EST) or New York open (8:00 EST).

Sell rules:

1. 25 EMA crosses down through both 50 EMA and 100 EMA.
2. Line-chart price trades below all three EMAs.
3. Trade during London open (3:00 EST) or New York open (8:00 EST).

Stop-loss: Stop loss 9-12 pips.

Exit: Take profit at 5-10 pips.

Centre of Gravity Trading System

Mean-reversion system: price closes beyond the outer green COG channel line, then an MA Cross OC arrow triggers entry back toward the middle band.

Timeframe	H1 or higher (H4, Daily preferred)
Pairs	All major and minor pairs; low-spread majors like EUR/USD, GBP/USD, USD/JPY preferred
Indicators	Centre Of Gravity (channel), MA Cross OC (arrow signals)

Buy rules:

1. Price moves below the bottom green COG line
2. Bar closes below the bottom green line
3. Wait for blue MA Cross OC arrow
4. Enter long on open of candle after blue arrow

Sell rules:

1. Price moves above the top green COG line
2. Bar closes above the top green line
3. Wait for red MA Cross OC arrow
4. Enter short on open of candle after red arrow

Stop-loss: Just beyond recent swing low (longs) or swing high (shorts); optionally trail or move to new support/resistance.

Exit: Fixed take-profit at 1:2 risk-reward, or the COG middle band, or exit on opposite signal.

How to Test These Systems Safely

1. Pick one or two systems whose rules you can follow without interpretation.
2. Set them up on a demo account with the broker’s real spreads; several systems use custom indicators that must be installed in MQL4/Indicators (see our free MT4 indicators for common tools).
3. Check that arrow or signal indicators do not repaint: scroll back and compare past signals with what you saw live.
4. Record at least 50-100 trades, including costs, before deciding whether a system has an edge.
5. Risk 0.5-1% per trade and stop for the day after a set loss.

Frequently Asked Questions

Which EMA periods are most used in these systems?

Short EMAs (3-15) for timing, the 34-55 EMA for the intermediate trend and the 100-200 for the main trend filter.

Do EMA systems work in ranging markets?

Poorly. When the averages flatten and tangle, crossovers and bounces fail often. Most traders pause EMA systems until a slope returns.

Are custom indicators required?

Some systems use custom versions of moving averages. Where a custom indicator is not available, a standard EMA of similar length usually gives a close approximation, but test it first.