200 EMA Forex Strategy For Newbies Called Bucking The Trend
As a new forex trader, you need to learn how to identify the trend on the intraday charts. With a little practice using this 200 EMA Forex Strategy, you should be able to identify the trend on the different intraday charts. 200 EMA ( Exponential Moving Average) is one of the most popular and widely used technical indicator in forex trading.
In order to use the 200 EMA Forex Strategy open the 4 hour, 1 hour and the 15 minute charts on your MT4 Platform. Now plot the 200 EMA on these 3 charts and color it red.
Tile the three charts in a vertical fashion so that you can view the three charts one above the other. Now, scroll through the various currency pairs like the EUR/USD, GBP/USD, USD/CHF, USD/JPY, USD/CAD, EUR/JPY, AUD/USD, NZD/USD, EUR/CHF or whatever pair you like to trade.
Search for a currency pair that has the price action well above the 200 EMA on the 4 hour chart and the 1 hour chart but below the 15 minutes chart. Similarly, you can also choose a currency pair that has price action below the 200 EMA on the 4 hour and the 1 hour charts but above the 200 EMA on the 15 minutes charts.
What this means is that the price action is bucking the overall trend temporarily on the 15 minute chart.
On the 15 minutes chart search for a suitable entry point using candlestick patterns like the hammer or the hanging man.
With a little practice on your demo account, you will be able to master this very simple 200 EMA Forex Strategy and realize how powerful it is. You will be able to find the suitable currency pair that is bucking the trend on the 15 minutes chart within a few minutes after a little practice.
So, in nutshell when you find the price action bucking the trend on the 15 minute chart while it is on the opposite side on both the 4 hour as well as the 1 hour chart, sit up and watch carefully to grab the opportunity to make a few pips.
Article Source: FxTradingStock.com
About the Author
Mr. Ahmad Hassam has done Masters from Harvard University. Get this highly profitable Magic Breakout Forex Strategy by Tim Trush and Julie Lavrin FREE. Get these Correlation Trading Cheatsheets FREE.
by: Ahmad Hassam
Total views: 41
Word Count: 352
Date: Sun, 14 Nov 2010
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