Exponential moving average
Exponential moving average is similar to the Simple Moving Average (SMA), however shows faster reaction to recent price changes compared to SMA.
Exponential moving average is similar to the Simple Moving Average (SMA), however shows faster reaction to recent price changes compared to SMA.
Being one of the most common Sooner or later all forex traders begin experimenting with different EMA settings. Quite often very interesting combination can be spotted. Here is one Simple Forex system based on 50 EMA indicator. Any currency pair. Time frame: 90 minute or 3 hour chart Indicator: 50 EMA. Entry: watch for a candle to pierce 50 EMA and finally close above (to enter Long) or below (to go Short). Enter with the second candle after it makes 5 pips higher than the previous one. Exit: not set. Stop loss order: 15 pips below 50 EMA. 
Risk Disclosure & Testing
Past performance of any trading strategy is not indicative of future results. Always backtest and forward test this strategy on a free demo account before committing real financial capital.
Practice This Strategy on a Live Demo
Choose an ECN broker with tight spreads and fast execution for strategy backtesting.