50 EMA rule

This is an EMA (exponential moving average) simple strategy. All traders try different settings of moving average at some point. This forex strategy can be used on any currency pair . The timeframe can be either 90 minutes or 3 hour chart. Basically you watch for a candle to break the 50 EMA line and close below (for short position) or above (for long position). If the second candle makes 5 pips higher (for long position) or lower (for short position) than the previous one, enter the position. Stop loss order can be set at 15 pips below 50 EMA for long position or 15 pips above 50 EMA for short position. For exit point, you can look at average daily range of the currency pair you choose. For example, EUR/USD might be around 150-200 pips. So you can set 150 pips as profit target. See the blue (long) and red (short) arrows on the EUR/USD 3 hours chart below.