You might have realized that the system generates its signal mostly by using the crossover of the EMAs. We can also stick to the trade till we get a bearish crossing in the EMA lines.Įmas and MACD Trading System For MT4 - Summary
The take profit is determined by analyzing the nearest low or major support level.
Those who have price action trading skills can use the Japanese candlestick pattern to determine the SL price. The EMA levels are going to act as a strong resistance level.
The stop-loss price can be determined by analyzing the nearest EMA. Since no system in the world can generate 100% profitable trade, we should not risk more than 2% of the account balance. But we should be careful about the lot size calculation. MACD Histogram bar should be below the zero lines.Īfter checking the required parameter, we can take our short trade.The price should be trading below the EMA 200 and EMA 50.By doing so, we can avoid the problems related to market noise in the lower time frame. Since the trade setups are analyzed based on EMA lines, we should be looking for the trade signals in the M15 or higher time frame only. To take the short trade, we need to check 3 simple conditions. For a more simple approach, traders can analyze the resistance level and set the TP.Įmas and MACD Trading System For MT4 - Bearish Trade Setup We can stick to our long trade till we get a bearish crossing in the EMA lines. If necessary, we can also use the nearest high to determine the stop loss point. So, we can place our stop loss right above the nearest EMA line since it will act as a resistance level. The EMA lines are going to act as a major resistance for the trading instrument. According to the inventor of this trading strategy, retail traders can also rely on the price action confirmation signal to take their long trade. We can execute our long trade after checking all these conditions. MACD Histogram bars should be above the zero lines.The price should be trading above the EMA 200 and EMA 50.If these 3 conditions are fulfilled, we can take the long trade. To take the long trade, we need to check 3 important conditions. Our goal is to analyze the few important metrics and find the potential zone for trading.Įmas and MACD Trading System For MT4 - Bullish Trade Setup Never think the data taken from the indicator is an absolute reading. Indicators are just tool which gives you an indication. Moving Average Convergence Divergence (MACD) Histogram (3,6,3)Īfter installing the indicators, the chart should look like this:.Exponential Moving Average (EMA) 200 (Red).Exponential Moving Average (EMA) 50 (Violate).Exponential Moving Average (EMA) 20 (Chocolate).Exponential Moving Average (EMA) 9 (Yellow).Let’s see the indicators used in this trading strategy: We will be using the concept of EMA cross-over to determine the end point of bullish and bearish retracement. In order to execute a trade, all the EMA should have the same slope. But to find the entry point, we will be using EMA 20 and 50. The Exponential Moving Average (EMA) is an important trend indicator that focuses on the most recent changes in the price. For example, if the price of an asset trades above 100 EMA, it means the buyers are dominating the market.
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