Very profitable strategy for forex scalping markets, binary options, as you can also use it in cryptotrading.
Simple trading strategiesForex Trading Strategy 5EMA and 8EMA
Simple trading strategiesForex Trading Strategy 5EMA and 8EMA
This is a simple currency trading strategy that uses the 5ema and 8ema indicators. This is how this forex trading strategy works:
If the fastest exponential moving average (5ema) crosses the slow ema (8ema) upwards, it is an indication of an uptrend.
If 5ema crosses 8e to the downside, it is an indication of a bearish trend.
Commercial tickets are taken after crossing ema
INDICATORS:
you need the exponential moving averages 5 and & 8.
NAMES OF TIME
Any
PAIR OF CURRENCY:
You can use this forex strategy for any currency pair.
PURCHASE OF RULES:
Wait until 5ema crosses 8ema up. Buy at the end of the candlestick that closes after the ema have crossed. Place your stop loss 5-10 pips below the minimum of that candle.
SALES RULES:
When 5ema crosses 8ema to the bottom, sell at the end of the candelabra. Place your stop loss 5-10 pips above the maximum of that candle.
TAKE PROFITS:
You can use a couple of options to take advantage:
your benefit should be established at least 3 times the risk in that trade
or you can aim to make a profit on the previous previous swing for a sell order and a previous high swing for a purchase order
HOW TO MANAGE A PROFITABLE TRADE:
How would you manage a profitable exchange made with the 5ema and 8ema forex trading strategy? Well, here are a couple of options you can use:
If the trade moves in favor, and you want to secure the profits, the best option is to move the stop loss and place behind the maximum (or low) of each subsequent candelabra that is formed. That means that for a short operation, move the stop loss and place the candlestick that continues making lower highs above the maximum. For a long operation, move the stop loss and below the minimum of each subsequent candlestick that continues to generate higher minimums.
Or if in the daily time frame, you can try using a tail end of 50-80 pips.
If you are in the 4 hour time period, use 25-40 pips of final stop.
ADVANTAGES OF THE 5EMA AND 8MA FOREX STRATEGY FOR COMMERCE
This is a simple and easy to understand forex trading strategy where beginner forex traders will find it easy to use.
In a market with strong trends, you can make many profitable pips when you overcome the trend.
DISADVANTAGES OF THE 5EX AND 8EMA FOREX STRATEGY OF COMMERCE
The forex trading strategy performs poorly in the trend markets.
If you trade with larger time frames such as 4 hours and every day, your loss of loss will be enormous.
which means that your risk will be huge, so you will have to negotiate small contracts to keep your risk within acceptable levels.
The exponential moving averages are lagging indicators and, therefore, each entry taken on the basis of moving averages is effectively "late". Which simply means that the price had already made a big move and you would not have entered the trade at the beginning of that movement
Therefore, at the moment when the forex trading strategy issues the signal to enter, it is possible that the market should make a temporary reversal and can also cancel its loss limit.
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