a simple trading strategy that works

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If you enjoy trading with indicators then you might also like  this  simple but very effective trading strategy that uses 2 EMAs( Exponential Moving Avarages) and a parabolic SAR( Stop And Reversal) dot.

Without any further delay let’s get started

Indicators

EMA 5, EMA 15 and Parabolic SAR dot (default)

Currency Pairs:  Any, but best traded on major and minor pairs.

Time frame: Any time frame.

Sessions: Any.

 

Buy Signal

Look to buy when these two conditions happen:

1. EMA 5 crosses over so that it is above EMA 15.

2. Parabolic SAR dot appears below the price candlestick

Stop loss: place a stop loss few pips below the entry point.

Take profit target: exit the trader when the parabolic SAR dot appers above the candle.

 

Let’s take a look at a buy trade example.

Note: EMA 5 is the blue line and EMA 15 is the red line.

parabolic SAR dot

 

 

Sell Signal

Look to sell when these two conditions happen:

EMA 5 crosses over so that it is below EMA 15.

Parabolic SAR dot appears above the price candlestick.

Stop loss: place a stop loss few pips above the entry point.

Take profit target: exit the trade when the parabolic SAR dot appers below the candlestick.

parabolic SAR dot

 

Thats it. If you have any questions, don’t hesitate asking in the comments section below. Enjoy.

Also read: How to trade the weekend gaps 

 

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4 thoughts on “a simple trading strategy that works”

  1. Good Morning to you,
    Please my question on the EMA(s) – is there any further parameters to the EMA settings like :- ‘Close’ and ‘Open’? or. I want to know so I can be on the same page with your teaching.

    Thanks for the Great work you are putting to together to assisting interest like me.

    Looking forward to your kind reply

  2. Noticed that this strategy have different time entry on different time frame,so cos at H1 you find out that M15 and M30 have gone far,what time best.

  3. I must commend the owners of this platform — I am a newbie, I have burnt my account severally — I have learnt very interesting Forex techniques — thanks a lot , God bless you as you bless others

    1. Hi Segun,
      Thank you for your appreciation. Glad you liked the strategies. God bless you too. Don’t forget to share with your friends 😉

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