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Forex & Stock Trading (The Easiest 3 EMA Technique)


This is the simplest and proven profitable trading strategy with a high win rate. In this trading strategy, I’m using three exponential Moving Average indicators with periods of 50, 100, and 200.

Trading NOTES

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However, If you want to enhance the accuracy of this strategy, I’ll also show you what needs to be done to filter the trading signals and make them twice as accurate.

So, here’s how the strategy works

The first step is to determine the current trend. To do this, we need to observe that all three lines are moving in the same direction and are separated from each other like this.

You should also avoid markets where the EMA lines cross each other like this. We want all three indicators to be moving in the same direction.

The position of the candle is also crucial. You should look for a setup where the candle is completely outside the EMA 50. This indicates that the market has significant bullish strength, and usually, such bullish moves will rise considerably, so we should go for a BUY if there is a suitable Pullback setup.

So, after you identify such a setup, the next step is to find our entry signal. Our entry signal occurs when the price pulls back and closes below the EMA 50 or EMA 100. This is the right pullback setup.

Trend PullBack

Next, we wait for a price pullback towards either the EMA 50 or EMA 100. Once again, you should always adhere to this rule, which is that during the pullback, the price should not go beyond the EMA 200. So, once the pullback occurs, we wait for the price to return to the EMA 50 again.

When the price rises above the EMA 50, we need to find a resistance area that has been successfully broken through by the price increase. This resistance area can be in the form of a trend line or a horizontal line.


Additionally, the RSI line should be above 50. If the RSI is above the 50 level, it indicates a strong BUY momentum.

After we initiate a BUY position here, we then set our target profit and stop loss. And as you can see, the price reaches our target profit, resulting in a profitable trade.

 

How to install the “TraderVersity 3 EMA RSI Technique
  • Download “TraderVersity-3EMARSI” (Zip/RAR File).
  • Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
  • Copy the “TraderVersity-3EMARSI.tpl” file (template) to your Metatrader Directory …/templates /
  • Start or restart your Metatrader Client.
  • Select Chart and Time frame where you want to test your forex system.
  • Right-click on your trading chart and hover on “Template”.
  • Move right to select “TraderVersity-3EMARSI” trading system and strategy.
  • You will see the “TraderVersity 3 EMA RSI System” is available on your Chart.

Remember, these trading setups can be applied across various time frames and markets. However, it’s essential to conduct your own backtesting to determine which pairs are most suitable for these strategies.

You don’t have to take every trade. Especially when you’re scalping, you’ll come across situations where you’ll get a lot of entry signals. And if that happens, you don’t have to take them all. You just need to take positions that you can manage well. It will be very difficult to manage multiple trades at once, especially when you’re scalping.

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