A few notes when using this trading strategy:
Timeframe: Any, but preferably M15 and above
Currency pair: Any
Technical indicators used: EMA 10, EMA 25, and EMA 50

RULES FOR TRADING THIS STRATEGY

For buy command
  • After the 10 EMA crosses the 50 EMA from below, look for a candle with a lower high price than the previous one. That is our buy signal.
  • Place a buy stop command 2-5 pips above the highest price of the signal candle.
  • If the next candle breaks the highest price of the previous candle, our buy stop will be triggered. But if not, continue to move the buy stop above any candle whose highest price is lower than the previous one until the highest price of this candle is broken and the entry point will be triggered.
  • Place your stop loss 2 - 5 pips below the lowest price of the signal candle. However, if there is a bottom or support nearby then it is best to use that area to place your stop loss as well.
For sell command
  • After the 10 EMA crosses the 50 EMA from above, look for a candle with a higher low price than the previous one. That is our sell signal.
  • Place a sell stop 2-5 pips below the low of the signal candle.
  • If the next candle breaks the low of the previous candle, our sell stop will be triggered. But if not, keep moving the sell stop down any candle with the lowest price lower than the previous one until the low of this candle is broken and the entry point is triggered.
  • Place your stop loss 2 - 5 pips above the highest price of the signal candle. However, if there is a peak or resistance nearby then it's best to use that zone to place your stop loss as well.
Take a look at the chart below for better understanding:


TAKE PROFIT

You can use one of two ways:
  • You can use the previous bottom or support level as the take profit point for sell orders. For a buy trade, use the previous high or previous resistance as the take profit point.
  • Or you can move the stop loss sent after each top (for sell orders) or behind each bottom (for buy orders) to follow the trend, and maximize your trading profits.
ADVANTAGES OF THE STRATEGY

This strategy has several advantages:
  • This is a fairly simple trading strategy, easy to understand, and easy to use.
  • In a strong trending market, there is a high chance you will make large profits.
DISADVANTAGES OF THE STRATEGY

Disadvantages that you need to pay attention to when trading are as follows:
As you know, all moving averages are lagging indicators. That means that sometimes there will be price movements that happened before then you enter the trade.
Hence, when the price moves sharply, it can be a reversal and cause your trade to lose money.
This trading system will not work well when in a sideways market, as it will give you a lot of noise.

CONCLUDE

You may wonder why not enter a trade when the 10 EMA crosses 25? That is because:
Trading is initiated when there is a bounce back after the 10 EMA crossed the 50 EMA
The 50 EMA acts as support if the price moves higher and acts as a resistance when the price moves lower than the price, so to ensure the price does not bounce off this 50 EMA, then the EMA 10 must pass 50 EMA before you can enter a trade.

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