EMA or Exponential Moving Average goes as one of the most popular trading strategies for FX traders. This works wonderfully when there is a strong market trend existing over a long time period. There are numerous strategies concerning EMA which one will find over the World Wide Web. For traders who prefer going the scalping way, and seek for a Forex EMA scalping strategy – the post explains 2.
1 Minute Forex EMA Scalping Strategy – (Using 34 Exponential Moving Average)
One simple Forex EMA scalping method is this 34 EMA approach. The time frame as obvious will be 1 min or higher and currencies in use will include all FX Majors.
Indicators to make use of – 34 EMA for Close, High and Low.
Interpreting the Chart:
This chart is fairly easy to use provided that traders keep these aspects in mind.
If the price of the currency is more than the Moving Averages, traders should always look to BUY with the currency coming back to its original Moving Average.
Similarly, traders who are in search of a sell breakout should look to SELL off their positions if the price is below the MA and is consolidating to its original MA position.
Experts state that what traders need to do is wait for the price to consolidate back to the MA and then hold the position. This is primarily to reveal that the trend will sustain for a period of time.
This is primarily what this simple Forex EMA scalping strategy is all about. Other than this 34 EMA strategy, another easy one which traders can look to use is below.
5 Minute EMA Scalping System Forex
This Forex EMA scalping strategy involves a time frame of 5 min chart and works well with EUR/GBP, GBP/USD.
Indicators to use are – 5 EMA to Open a Trade (shown by a red line) and also to Close it Down (presented by a green line). With it, one also needs to use the Stochastic and MACD.
Interpreting the Chart:
For Going Long, Traders Need To Ensure These Criterions Are Met
The Stochastic which crosses the 20 line and moves up does not mean an Overbought situation.
Moving Average Convergence Divergence must close much higher than its previous value.
If both 5 EMA lines intersect each other and the signal candle closes bullish.
For Traders Wanting To Go Short, One Should Ensure
If the MACD indicator is closing down lower than its previous value.
Both EMA lines are crossing each other.
If the candle signals help close down the Bearish.
Lastly, the Stochastic indicator which crosses the 80 line from above and declines downwards is not known as an Oversold situation.
These are 2 easy strategies which traders can make use of at the start. However, they should cater to a demo account and perfect their skills and compatibility with it. Not only will it allow them to determine which one among the 2 is the best Forex EMA scalping strategy for them, but it also makes them aware of its actual proficiency.
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