The EMA strategy

This is the very strategy we use to send all our signals and it is also the very strategy that passed the
FTMO. With this strategy it is beneficial for you have an understand regarding the basics and
foundations there are to forex trading.

This strategy is remarkably simple and may seem too simple. Remember trading does not need to be
complicated, why complicate something when it does not need to be.

What you need for this strategy

3 x Exponential Moving Averages (EMA) :

8 EMA

21 EMA

13 EMA

The basics:

• This strategy is Traded on the 1-hour time for our entries

• When the 8 EMA is Above the 21 EMA we are looking for BUYS / LONGS
• When the 8 EMA is below the 21 EMA we are looking for SELLS / SHORTS

So lets see how to actually trade this!

How to trade using the strategy:

• First, look at the daily time frame. What are you looking for?
You are looking for which way trend is going; this is indicated by whether the 8 EMA is above
or below the 21 EMA.
With this you also need a clear spread between the 3 EMAs to confirm that this is the trend.
Below is an example:

The 8 EMA is RED, 13 EMA is Blue and 21 EMA is Orange

So in the example we can see a clear spread of the EMAs indicating that we are looking for BUYS.

If we were Looking for sells, the 8 EMA would be below the 21 EMA and we would again need a clear
spread between the EMAs.

• Once you have confirmed the daily trend, go to the 4-hour chart. We need
the exact same confirmation. So if the daily indicates BUYS, we need the 8 EMA above the 21
EMA and we need a clear spread of the EMAs. This would be the inverse if we are to look for
SELLS.

• Lastly, we look for our entries, this is on the 1-hour chart.

On the 1-hour chart we need to see this clear spread between the EMAs. Same as the other two-
time frames.

But how do we enter a trade?

 • To enter a trade, we need a pull back to the 8 EMA.

So here we see a pull back to the 8 EMA, this now becomes our trigger bar. If the candle retraces
and touches the 21 EMA (orange one) then the trade is now invalid and you would look for another
trigger bar.

So, we now look to place our order once the trigger bar is identified. To find the entry, you count
back 5 candles from the trigger bar. If we are looking for BUYS then we place the buy stop order 3
pips above the highest of the 5 candles, If we are looking for SELLS then we place a sell stop order 3
pips below the lowest of the 5 candles.

Here we place the order 3 pips above of the highest of the previous 5 candles. We place a buy stop
order.

We place our stop loss 3 pips below the trigger bar, as shown by the red bar above.
Now setting a Take profit or when to exit trade

The General Rule to exit a trade is when the 8 EMA crosses the 21 EMA again,

Or you can trail your stop loss on every 3 hourly candles. So, for example if you are buying, place the
stop loss 3 pips below the lowest of the 3 candles and vice versa.

Please ensure to practice on a demo account and watch the video too for a video representation!