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Forex & Stocks “14-50 EMA Trendline” Trading System and Strategy


Forex & Stocks 14-50 EMA TRENDLINE Trading  Strategy – How to Combine EMA and Trendline for Scalping and Swing Trading. This tutorial provides a clear, winning, step-by-step guide to, “How to Combine EMA and Trendline in the Forex, stocks, Commodities, or any financial markets and generate consistent profits”.


So, by the time you finish this tutorial, you’ll know exactly when to enter high probability trade using the Exponential Moving Average Indicator.

What is Behind The 50-Day EMA

There are dozens of ways to use the 50-day EMA in market strategies.

It works as a reality check when a position hits the magic line after a rally or selloff. It has equal benefit in lower and higher time frames, applying the indicator to intraday charts or tracking long term trends with the 50-week or 50-month version.

What’s The Deal With Trendlines?
  • Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices together.
  • Trendlines are used to give traders a good idea of the direction an investment’s value might move.
  • Understanding the direction of an underlying trend is one of the most basic ways to increase the probability of making a successful trade because it ensures that the general market forces are working in your favor.
  • While trendlines can be used to gauge the overall direction of a given asset, they can also be used by traders to help predict areas of support and resistance.
  • Trendlines can vary drastically, depending on the time frame used and the slope of the line.

 

How to install the “TraderVersity-1450EMAsystem
    • Download “TraderVersity-1450EMAsystem” (Zip/RAR File).
    • Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
    • Copy the “TraderVersity-1450EMAsystem.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 “TraderVersity-1450EMAsystem” trading system and strategy.
    • You will see the “14-50 EMA System” is available on your Chart.

 

BUY Setup


Let’s break down the trading strategy:

  • 1st. Apply 50-period exponential moving average and 14-perid exponential moving average to your chart.
  • 2nd. Draw relevant trend lines ensuring you have a longer term line and a short term line.
  • 3rd. We are looking to see a break of the short term retracement trendline.

Once you have the trend lines and the EMA on your price chart:

  • 1st. Price above the EMA lines and the long term trend line.
  • 2nd. now we are looking to see a break of the short term retracement trendline.
  • 3rd. Price breaks the short term trend line to the upside putting us on alert for a potential long setup
  • 4th. Price closes above the short term trend line.
  • 5th. Traders can enter on close or buy stop the high of the trigger candlestick.
  • 6th. The Stop Loss is placed in the minimum recent low.
  • 7th. exit trade when the Price breaks below the 14-period exponential moving average.

 

SELL Setup

  • 1st. Price below the EMA lines and the long term trend line.
  • 2nd. now we are looking to see a break of the short term retracement trendline.
  • 3rd. Price breaks the short term trend line to the downside putting us on alert for a potential short setup.
  • 4th. Price closes below the short term trend line.
  • 5th. Traders can enter on close or sell stop the low of the trigger candlestick.
  • 6th. The Stop Loss is placed in the maximum recent high.
  • 7th. exit trade when the Price breaks above the 14-period exponential moving average.

 

Trading NOTES
  • There are dozens of ways to use the 50-period EMA in market strategies. It works as a reality check when a position hits the magic line after a rally or selloff. It has equal benefit in lower and higher time frames.

DOWNLOAD TRADING SYSTEM


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