Traders are constantly trying to average the market, so trading strategies based on moving averages are constantly being invented and improved. This time we also offer you a variant of the TS, based on the EMA and fractals.
For the work we will need:
- Currency pairGBPUSD
- Timeframe: М15
- IndicatorsEMA(34, High), EMA(34, Close), EMA(34, Low), EMA(12, Close), Fractals
All indicators are standard, you can easily find them in any trading terminal, so there should not be any problems with installation. Similarly, there should be no problems with the rules of the strategy, they are simple and understandable even to a beginner.
Rules of the trading strategy
Buying deal opens when the EMA(12, Close) crosses from bottom to top all three indicators EMA(34). After that, we wait for the opening of a new candle and buy on it.
Stop Loss set on the nearest fractal, located below the channel of the EMA(34). Take profit is taken equal to the stop loss. Alternatively, you can use a trailing stop or close the trade when the first opposite fractal appears.
A bargain for sale is formed under opposite conditions: EMA(12, Close) crosses downwards all three indicators EMA(34). After that, we wait for the opening of a new candle and sell on it.
NOT open a trade if EMA(12, Close) goes along the channel from EMA(34) for quite a long time, as well as when EMA(12, Close) crosses not all of EMA(34), but enters and exits the channel.