EMA Trading Strategy 200 EMA 50 EMA cross over l Built powerful system with EMA Crossover Strategy

One of the famous strategy that everybody should be aware of trading currency or any trading market is EMA trading strategy which is also know as "Moving Average Strategy", and the rules are simple when a particular period of EMA (Exponential Moving Average), cross other EMA of set period then we trade the cross in the direction of the price and we need to have some strict money management rules to trade any strategy and same rules applies to EMA trading strategy as well.

EMA trading system setup or Moving Average Crossover system

As we all know that every mechanical system is lagging but If we look in to the scenarios and apply few filters and look for overall sentiment then we can make any system as powerful as it can be and there are strict Forex Money Management rules that we need to follow while trading crossover.

Look at the following chart for example.

This is the Euro Dollar Chart of 20th June 2016, in which price is in strong bullish momentum after recent fall from the top but manage to cross the EMA period (35,20),and upward slope is solid and resistance turned out support is holding and that is what we should be looking to trade EMA Crossover strategy, in which price should test after cross and atleast make a new high in last 5 days, and today we saw a big opening up gap and price is looking to fill the gap and meantime testing the EMA as well, and If we see after testing Candle manage to close above the open and we set a pending buy limit 10 pips above the last candle high prices and set the stop 10 pips below the lower low of the signal candle, but make sure momentum does not fade out too much as there should not too much sideways movement after price has rallied high or even while price testing the EMA or support whatever suits the scenario.

Filters to be used in EMA Trading Strategy

***Price should make a new 5 days High and crossover should be strong

***Entry Should always be made at retest

***Price should never goes sideways after making a new 5 day high or while retesting EMA or Support or Resistance

***Entry Candle after retesting EMA or support or resistance should close above its open.

***Entry should be +/-10 pips above or below the low of Signal Candle and same rules stops should always be +/-10 pips of the same candle.

***Strict Forex Money Management Rules are the key to this cross over system and Risk to Reward should always be 1:2 or 1:3

Another Example of EMA Cross over strategy Gbp/jpy 20th June 2016

We are here looking for another short setup in gbp/jpy which has managed to break below strong support zone and it also was the multi year low and we are still bearish to the pair till we get a strong weekly bullish candle signals the change in momentum.

However, we now need to see the chart if it fulfill all the necessary requirement that we mentioned in the above checklist as this went straight into the resistance and could be another trap if price manage to trade below the indecision candle.

200 Period EMA filters the Noise

Here is One EMA (200) period, which is used to filter the noise as it is the most used EMA world wide to see the slop of the trend up or down and IF 200 period EMA is flat, then there are lot of sideway movement can be expected, and one more thing I would like to mention here that in case of sudden reversals in overall large dominate trends, up or down price use to test 200 period EMA and use to reverse again after testing down the EMA.

There are numerous filters used with EMA throughout the world with success and one of the widely use filter is trendline and slope of EMA and trendline most probably filter the noise from the chart as it can only happens in strong trend, and trader use to target exotic pairs to trade EMA as usually they require less time to watch too many market data and spend tons of hours for setups. One thing is sure that there is no trend building up without Ema Crossover, but we have to decide which crossover we should use and what combinations we should use to make the system more powerful and hence worth using and making the system work for you in the long run.

Trade EMA with high low, ranges and breakouts and retests

The above Chart of Loonie tell us the power of 200 EMA cross over and we have to look for the slope and If it is too strong slop and we have ranges above or below, then we can have the idea while price reach and expect to react at EMA 200 period. EMA 200 is so powerful and IF you have knowledge and practice of low high, ranges and breakouts with support and resistance, then low risk entries can prove to be very strong risk reward opportunity.

In first case we have almost 2 months range, which make a new high and rejection from there made a strong base at 200 period EMA, as price went into tight channel while it test the EMA. And after price Rejects from 200 period EMA, it rallied. We can have the same scenario facing up in the next setup where we have tight ranges and rejection and price went into channel to test 200 period EMA and rejection from there price resume the trend and we can have large range or we can see large bearish trend resume from here and it could be very good opportunity IF we place the stops above the second rejection which was at S/R flip as well.

How we can use EMA 20,50,200 with Bollinger bands and Other indicators Step to step guidlines on how we can use EMA's of different value for day trading and for swing trading with the help of different indicators like RSI,Bollinger bands and Stochastic oscillator.

Here in this forex market there are several powerful trading system based on several indicators but ema forex trading strategy is vastly used and is included in almost every Forex strategy. If you are good at controlling risk and have patience to wait for entries on higher time frames then it is the nest way to use ema to filter trend and wait retest of ema and specially if it is a confluence or any fibonacci number or strong demand areas.

How to choose best Forex Trading Strategies l Forex Secrets

Over years, there are millions of Forex Trading Strategies have been invented and used successfully and best part is that without caring about what the fundamental impact would be over the coming days, those strategies give results in longer terms, and this is the best part of trading with Technical Analysis that You don't care what impact news would have and how much movement it is possible, but still there is lot of noise and selection of time frames filter the noise and whenever you choose any system or mechanical method to predict the future price, You need to have the complete knowledge of every time-frame from monthly to five minute chart as it will clear most of the doubts creeping out of your mind. However, with time retail traders develop the different methods of predicting the future price and they use it to predict any market currency, future, metal or energy.

In this section I would probably discuss the best methods to predict the Future price of any currency pair, but it should be completely tested over time and targets to make the best use of any system as it will enable you to understand drawbacks and sentiment which works best for the system you use. .

Most Famous and best strategies to Trade Forex

***EMA Trading Strategy

EMA trading Strategy is most simple and famous and the best choice for comers to predict the market movement and It is probably the first one to tell you that pullback is over and Trend is about to resume. yes, this is the best way to trade EMA that You look out for pullbacks rather than looking for reversals. Take a look at EMA trading Strategy

***Fibonacci strategy to predict market movement

Fibonacci method has been used by bunch of traders and professionals that are using Elliott wave to predict the future price and pattern of five impulsive and three corrective waves provide lot of accuracy and early warning to call the bottom and top, but this post is not about Elliot wave as I have easiest way to use Fibonacci with combination of RSI to give you best strategy to trade trend and with the strategy, You can never miss an early entry to multi-week trend and with only 20-30 pips of stops. Check how you can use Fibonacci Method to improve Trading Results.

Can we really make a living out of Forex

Hi,Its been quite a choppy price Action again through the week due to lack of high impact news and it never works for a trader to plan any trading activity when there is lack of participation from a group of traders whether bulls or bears. Forex Trading is somewhat different from Stock Trading and you need to learn different price Action Techniques which you use in stock trading to make living out of Forex. Definitely, there are immense opportunities, but need to remain selective in your approach while Trading Forex and make it work for you and make a living out of Forex Trading.

Things you must need to know If you want to make a living out of Forex

First question that comes to mind of every trader who want to make a living out of Forex is How much capital do he/she needs to invest to make a substantial profit and rely on Forex to make a living. It is really important to know that amount of capital a trader can invest can totally rate their ability to make a living from trading. In fact, capital plays a vital role in making decision and large capital can offer great returns. A trader's skills to access size when condition does suits the style one adopt is really separates a skilled trader from other novice or amateur trader.

Also Read:-- My Best Trade Recommendations

How to Rate a Forex Trader Performance

Trust of the fact is that Trader's performance is dependent on various factors. One of the main factor that a trader who want to trade Forex for a living is the control and the ability to analyze market, but what does we do as a beginner is to invest small capital and dream of making millions in short span of time. So, where does a trader look to rely on circumstances which are unlikely to occur, whether one accumulate profits and compound it over time, still you have to use leverage to take unnecessary risks to build their account in short time or pressure of making a definite amount If you rely on Forex For a living and they dream of making 10 times or even double their accounts in a month or two .

Forex Leverage a double edge sword

Leverage is one tool which offers high reward couple with high risk as well. So, If you don't learn the technique of money management correctly, the benefits of leverage won't really work for you at all. Leverage does allow a trader to take large positions but leverage is not dealt with the care that it should be. On an average day trader look to make 10-20 pips a day on $1000 account and try to make $2000 quickly, may work for a shorter period, but in long run one should learn to adopt few rules and learn to build their account slowly if one want to make a living out of Forex. As the account grows the trader may be able to make a living off the trading, but attempting to make a living off a small account will surely more likely result in increased risks, excessive use of leverage would more often resulted in excessive losses.

Trade Setups and Trade Diary for the Next Week

I would cover more points in the coming weeks and months which would clear all the thoughts of preparing yourself If you want to make a living out of Forex and post of the articles to tell whether You can really rely on Forex for living.

Pound is still bullish of all the major Currencies True Trend

Its been quite sessions all the way this week amid lack of participation of strong holders, but Pound dollar is exception to the as it is trading with clear swings up and down. I found this pair to found some hurdles ahead of 1.4610-25 area, but when it is clear we certainly keep an eye on 1.4661. Chart explains that pound certainly found some bulk orders at previous area of demand and supply zones and it often happens when a pair like "Sterling", can't hold it too much in choppy market conditions and there is always happening something that really can fuel bulls and bears to participate.

Also read :--- How to make a living out of Trading

Entry long was offered at 1.4485 low with minimum risk and hence it was well worthy to test 1.4600, hence I got in and out early because bit of downside rally to test can be seen and if 1.4661 is cleared then it would clear the hurdle to clear the supply and higher prices can be seen.

I always enjoy clear swings and set of demand and supply to make me feel that how much risk can be taken to see if price manage to test the high of supply and that's why I always watch 95% of the time and take action only 5% of time and I really enjoy such trades which falls for true demand and supply with complete new set of orders and Cash flow at the start of sessions, specially if it is one of the active sessions.

Also watch:- How I was sure of Rise in Gbp/usd

Trading supply and demand approach and Reaction at Crucial tests

It has been a treat to keep updating the blogs and thanks for the requests at youtube channels and also in emails . This post is all about how we manage to trade higher time frames tests and approach. As you all know Price is Fractal and We all look for historical monthly and weekly charts to better analyze our trade entries and look for better areas to put our stops and maximize our profit targets. But Indeed, If you every know what is market is about to do or react you don't really need to use stops at all or even few pips even at higher time frames because market set pending orders during test at pin point levels and It could be psychological tests barrier like 50,00 or it could be at strong supply tests.

It is a fact that during the free fall or news price did not manage to collect all the orders that it need so that is why sometime we see facts that market recover in seconds when news is released and price start to cover.

What happen in such Cases, Price recovered and test the origin of the fall and see If market reacts to it or If price has engulf the crucial support or demand we do really see a reaction when it gets to the origin of the move.

I was asked same question several times about one of my video post at youtube channel and It has really forced me to come up with a solution which is easily understood and help you manage and decide your trades accordingly.

Some pairs rise after consumption of supply immediately and fall after there is no buyers left and all the demand buckets gets filled or you have seen enough evidence of Distribution Phase or few traps after the completion of distribution phase. As these levels are easy to spot when a uptrend collapse and hints us the end of phase.

But Currency trading is somewhat different from Stocks and Indexes as there are trends does seems to stay there forever till they are finally signs of reversal seen on monthly and higher time frames and the above example is just a an small example that long term downtrend is about to resume and it can also called "redistribution", and in the example shown above is simple approach of supply and rejection and rise to "QM level", when price engulfs the demand and approach the supply again.

Then what you need to do while see such scenario set pending orders and set stops because market is going to test the next decision point if found pending orders on those areas.