Forex Trading Strategy

A trading strategy is a combonation of indicators and rules to guide you to find trades. Once you develop a strategy you must stick with it and follow the rules exactly. If you do not follow the rules you will never be able to accurately determine if your strategy works.

You can develop your own strategy or use a strategy that was already created.

This is a great strategy that is simple and can be used to become a profitable trader.

Indicators: 10 EMA, 25 EMA, 50 EMA.

First Identify the trend with a trend line on a 4 hour chart

Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).

Exit rules exit when 10 EMA crosses 25 EMA again.

This strategy is best in trending markets if the market is in a consolidation period do not use as the movement is small so you run higher risks.
 

 
The area circled is where the cross over occurs and that is where you would enter short.
 

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