It is in the 1 hr chart where your trade entries are executed when the trend in the 1 hr chart is the same as the 4 hr and the daily charts.If yes, switch to the 1 hr chart and check if the 1 hr chart is in the same trend as the daily and the 4 hr charts.Switch to the 4 hr chart and see where the 200 ema is relative to the price, is it in the same trend as the daily chart.The daily chart determines the main trend. Place the 200 ema on the daily chart of your Forex pair.Here are the 5 steps to trading this Forex strategy The 200 ema strategy is a multi-timeframe forex strategy which means you need the daily chart, the 4 hr chart and the 1 hr chart.
THE 200 EMA TRADING STRATEGY AND HOW IT WORKS When price is above the 200 ema, that’s an uptrend.When price is below the 200 ema, that’s a downtrend.Here’s what you need to know about the 200 ema: Why the 200 and not another one like the 50 EMA or the 20 EMA?īecause 200 EMA is one very popular Forex indicator used by lots of traders and is used to determine the main underlying trend regardless of any corrective move in the price action. More specifically, we are going to use the 200 EMA for this trading strategy
In order to objectively determine the trend on the time frame of our choice, we are going to use the exponential moving average indicator that every charting platform will have. Remember that there will be a different trend on each time frame and it is perfectly acceptable to have a downtrend on a 4 hour chart and an uptrend on the daily chart. In order to do that, there is one very important thing we must know about the market. With the 200 EMA Trading Strategy you are trading with the trend and are hopefully buying low, selling high, and at times catching a major move in the market carrying you into a very large swing trade. The 200 EMA Trading Strategy is a very simple and really easy to follow Forex trading strategy that you will find really appealing and has the potential to bring your hundreds of pips a month.
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