The 3EMAS swing trading system is a comprehensive method that is based on 3 exponential moving average or EMA. A trade is initiated on the failure of the retracement that happens after the 10ema crosses the 50ema .
There is no trade when the 10 EMA crosses the 25 EMA because the 50 EMA line acts as a support if the price is above it and acts a resistance when the price is below it. So, just to make sure that the price does not bounce off from this 5)ema line, the 10ema must cross the 50ema before opening a position.
This strategy is applicable to any currency pairs on a 1-hour timeframe and above.
Trade Entry Rules:
Place a buy stop order 2-5 pips above the high of the candlestick which has a lower high than the previous candlestick after the 10 EMA crosses the 50 EMA to the upside.
Place a sell stop order 2-5 pips below the low of the candlestick which has a higher low than the previous candlestick after the 10 EMA crosses the 50 EMA to the downside.
If the buy stop/sell stop order is not executed then continue to move the buy stop /sell stop order above/below each new lower high/higher low that forms until the retracement fails and the high/low of the candlestick is broken and trade is executed.
a) Target profit is at the previous swing low for sell position and previous swing high for a buy a buy position.
b.) Trailing stop is another option to take profit.
c.) Place stop loss at 2-5 pips the low of the candlestick where the buy stop is broken. That is if you are in a buy position.
d.) Place stop loss at 2-5 pips above the high of the candlestick where the sell stop is broken. That is if you are in a sell position.
Trailing stops behind the lower swing high and below the higher swing low is a great way to manage the trade. This will lock in profits as trade moves in favor until your profit target is hit or if you don’t have a profit target. Ride with the trend until you got stopped out.
This strategy is simple and easy to understand.
This is great in trending markets.
High gains can be achieved.
EMAs are lagging indicators. The market has made a big move before the signal shows.
This trading system is not good in trending markets.
How to install 3 EMAs Forex Swing Trading Strategy?
Download 3 EMAs Forex Swing Trading Strategy.zip
Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
Copy 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 strategy
Right click on your trading chart and hover on “Template”
Move right to select 3 EMAs Forex Swing Trading Strategy
You will see 3 EMAs Forex Swing Trading Strategy is available on your Chart