Simple high accuracy “20 and 5 EMA Support Resistance Forex Trading Strategy” – Today we’ll discuss the 5 and 20 exponential moving average crossover as a basis for a trend reversal strategy.
The moving average acts both as a magnet and a trampoline. It is a magnet because when the price is already too far from it, it tends to pull price back to itself.
In this strategy, we need the support and resistance line to trade the market.
- Time Frame: M5 or higher
- Currency Pairs: Any
- Moving Average
- Madro Golden Filter
- Relative Strength Index
- Download 20 and 5 EMA Support Resistance Forex Trading Strategy (Zip File)
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators /
- Copy the “20and5EMASupportResistance.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right click on your trading chart and hover on “Template”
- Move right to select Basic Donchian Channel Trend Riding Forex Trading Strategy
- You will see “20 and 5 EMA Support Resistance Forex Trading Strategy” is available on your Chart
- Moving Average: 5 EMA cross above the 20 EMA
- Madro Golden Filter: Blue signals
- Relative Strength Index: Upward and above level 55 line
- Support and Resistance: Price break above the key resistance area
- Moving Average: 5 EMA cross below the 20 EMA
- Madro Golden Filter: Red signals
- Relative Strength Index: Downward and below level 45 line
- Support and Resistance: Price break below the key support area
This trading is based on the indicator. With this strategy, knowledge of candlestick patterns and price action is not important. This is because you only need to look for a price break in the “EMA cross and support-resistance” area.
One of the best ways to make money out of the forex market is to trade with the trend. But it is quite difficult to predict when a trend would start.
However, what we could do is to enter the market at a time when the trend is already identifiable.
This strategy allows traders to do that.