EMA + Stochastic
Last updated
Last updated
Indicators:
(4, dark blue)
(13, yellow)
(50, blue), all without offsets and applied to close prices
(12, 9, 5, close/close) with levels: 20, 40, 60, 80
Key conditions:
The timeframe for analysis and trade execution must be H1 or higher. Stop Loss should be set 30 to 50 points away or beyond the EMA (50). Once the trade reaches a profit of 50 points, move the Stop Loss to breakeven and trail it along the EMA (50). Entry is made at the opening of the next bar after all conditions are satisfied.
BUY conditions (all conditions must be met):
EMA (4) crosses EMA (50) from below to above (1st signal).
EMA (13) crosses EMA (50) from below to above (2nd signal).
The Stochastic indicator moves upward from the oversold zone, with the red line above the dark blue line.
SELL conditions (all conditions must be met):
EMA (4) crosses EMA (50) from above to below (1st signal).
EMA (13) crosses EMA (50) from above to below (2nd signal).
The Stochastic indicator moves downward from the overbought zone, with the red line below the dark blue line.
Exit criteria: Exit the trade when the Stochastic indicator generates a reverse signal. For a BUY trade, exit when the Stochastic is above 60 (or 80); for a SELL trade, exit when it is below 40 (or 20).
Open a chart with an H1 timeframe or higher. Apply three EMA indicators with periods 4 (dark blue), 13 (yellow), and 50 (blue), all applied to close prices without offsets. Add the Stochastic indicator with settings (12, 9, 5, close/close) and levels 20, 40, 60, and 80.
For a BUY trade, wait for EMA (4) to cross EMA (50) from below to above, followed by EMA (13) crossing EMA (50) in the same direction. Confirm the Stochastic indicator is moving upward from the oversold zone, with the red line above the dark blue line. Enter the trade at the opening of the next bar, set a Stop Loss 30 to 50 points below the EMA (50), and trail it once the trade is in profit.
For a SELL trade, ensure EMA (4) crosses EMA (50) from above to below, followed by EMA (13) crossing EMA (50) downward. Confirm the Stochastic is moving downward from the overbought zone, with the red line below the dark blue line. Enter the trade and manage it similarly. Exit based on the specified conditions.
