Торговая стратегия «Double EMA»

Лучшие брокеры бинарных опционов за 2020 год:
  • Бинариум
    Бинариум

    1 место — лидер рейтинга! Бесплатное обучение и демо счет!
    Контроль честности и надежности!
    Получите бонус за регистрацию на сайте Бинариум:

  • ФинМакс
    ФинМакс

    2 место в нашем рейтинге. Надежный брокер!

Double EMA Channel Forex Trading System

Introduction to the Double EMA Channel Forex Trading System

The forex strategy described is a trend following strategy designed to allow traders to follow an existing trend. This strategy is known as the double EMA channel trading strategy, basically because it uses two exponential moving averages to track the movement of the trend, from where traders can get in to profit from that trend.

Trades are taken on all currency pairs, and any time frame can be used. Higher time frames usually give more rewards in terms of number of pips that can potentially be made, so it is advised that as much as possible, higher time frames are used for this strategy. Furthermore, trends are better defined on higher time frames.

Indicators Used:

The indicators for this strategy are as follows:

  1. 60-period exponential moving average applied to highs.
  2. 60-period exponential moving average applied to lows.
  3. 240-period exponential moving average applied to lows.
  4. 240-period exponential moving average applied to highs.

Please note where the moving averages are applied and make the necessary changes in the indicator window. The exponential moving average indicator is found in the MT4 as a native indicator.

The Strategy
The strategy is a trend-following strategy. We are looking at two things:

Лучшие брокеры бинарных опционов за 2020 год:
  • Бинариум
    Бинариум

    1 место — лидер рейтинга! Бесплатное обучение и демо счет!
    Контроль честности и надежности!
    Получите бонус за регистрацию на сайте Бинариум:

  • ФинМакс
    ФинМакс

    2 место в нашем рейтинге. Надежный брокер!

  1. The 60-period moving averages must either be above the 240-period moving averages (long trade) or located below the 240-period moving averages (short trade). It makes it easier to view both 60-period MAs as one single tunnel, and the 240-period MAs as another tunnel.
  2. We also want both sets of moving averages angling towards the intended trade directions, since the direction that they point to is the direction of the trend. In other words, all four moving averages must point to the trend and therefore the trade direction.
  3. In some cases, only one of the 60-period moving averages can be above the 240-period moving averages for a long trade, or below the 240-period moving averages for the short trade.

Once you have these in place, it is time to go to the trades.

1) Long Trade
The Long trade setup occurs when:

  1. The 60-period EMA tunnel is above the 240-period EMA tunnel, or at least one of the 60-EMA lines is above the 240-EMA tunnel. The previous situation is preferable.
  2. At the same time, the price action candlesticks moves into the 60-period EMA tunnel.
  3. Then price breaks out of the upper 60-period EMA line (i.e. breaks the 60-EMA tunnel upwards).
  4. Allow for a brief pullback to broken 60-period EMA line, then go long at the open of the next candle.

The long trade is then executed at the next candlestick’s opening price. We demonstrate this trade setup in the snapshot below:

The snapshot shows the setup for this trade. The entry point is shown.

Stop Loss

The stop loss is set at a few pips below the 60EMA red tunnel, i.e. below the lower of the two EMA lines. If you look closely at the charts, you will notice that a few candles after the long entry, price action tried to go below the red tunnel but was prevented from doing so by the lower of the two 60EMA lines. This shows the importance of setting the stop loss as described.

Take Profit

The Take Profit is dynamic and cannot be set at trade entry. The Take Profit is the area where the Stochastics histogram bars are so high that they are virtually in the normal overbought territory that the regular Stochastics indicator would have been at that time. Once price gets to this area, the trader should then take profit. This trade was taken on the 4hr chart of the GBPUSD and would have yielded 100 pips.

Short Trade
The trader should go short on the asset when the following setup occurs:

  1. The 60-period EMA tunnel is below the 240-period EMA tunnel, or at least one of the 60-EMA lines is below the 240-EMA tunnel. The previous situation is preferable.
  2. At the same time, the price action candlestick moves into the 60-period EMA tunnel.
  3. Then price breaks out of the lower 60-period EMA line (i.e. breaks the 60-EMA tunnel downwards).
  4. Allow for a brief pullback to the broken 60-period EMA line, then go short at the open of the next candle.

The short trade is then executed at the next candlestick’s opening price. We demonstrate this trade setup in the snapshot below:

The snapshot shows the two EMA tunnels, and the price entry point. Notice that price first broke the lower 60-period EMA line, then attempted an upside pullback. This is where the short entry is initiated.

Stop Loss

The stop loss is set to a few pips above the upper 60EMA line, i.e. above the red tunnel.

Take Profit

The Take Profit level is set at the trader’s discretion, using some of the principles we have talked about in previous articles.

Conclusion

This strategy performs very well in a trending market, and less so in a range-bound market. Therefore, trades should be made as much as possible on higher time frames when it is sure that the market is trending.

This strategy should be thoroughly practiced on a demo account before being applied to a live account. The indicators are found on the MT4 trend indicator class.

200/50 EMA Trading: How To Trade and Identify Trend with EMA Best Setting Strategy

Super High Accuracy 200/50 EMA Trading Strategy – How To Trade and Identify Trend with EMA Best Setting System. Double EMA (200/50 Exponential Moving Average) trend strategy is very easy and profitable.

This trend following strategy is based on 2 Best EMA Setting 200 and 50 day. 200 EMA is a very important technical tool to identify the market trend. So you can get signals according to the trend.

Read: How To Trade and Identify Trend Reversal Patterns: High Accuracy Forex RSI Trend Reversal Trading Strategy For 1H 4H and Daily TimeFrames

As this is a trendy strategy, so success rate of this strategy is excellent.

If you get a solid trend in H1, H4 or Daily time frame, then you can gain 500-1000 pips from one trade only.

  • DOWNLOAD these NON-REPAINT Tools For Making The Perfect Trade Entry (the best trading tools all traders MUST HAVE)
  • Use a demo account or a small live account first to practice this trading system

Read this basic rule of this 200/50 EMA carefully – First, you need to wait for crossover in the up or down direction.

  • When 50 EMA crosses 200 EMA from below to upper, then you need to look for BUY entry.
  • When 50 EMA crosses 200 EMA from above to lower, then you need to look for SELL entry.

For BUY Entry (example), when 50 EMA crosses 200 EMA from below to upper, then you need to look for BUY entry. After crossover, if the price moves rapidly, then you need to wait for some retracement. When price takes little retrace and touches 50 EMA like as below image, then you will get BUY/LONG Entry signal.

This EMA crossover strategy is suitable for trendy market. So you should not apply this strategy on ranging market area.

This Traderversity Super High Accuracy 200/50 EMA Trading is easy for a beginner to understand and yes it’s profitable if used wisely.

  • Best Time Frames: H1, H4, and Daily
  • Recommended Currency Pairs: EURUSD, GBPUSD, USDJPY, and all major pairs

  • 50 EMA crosses 200 EMA from below to upper, then you need to look for BUY entry (Read the basic rule of this 200/50 EMA above)
  • Williams, Percent Range line upward above 50 level
  • Triline 3 MTF + Sigma TT Green color bars
  • Trend Management Blue color bars
  • 50 EMA crosses 200 EMA from above to lower, then you need to look for SELL entry (Read the basic rule of this 200/50 EMA above)
  • Williams, Percent Range line downward below 50 level
  • Triline 3 MTF + Sigma TT Red color bars
  • Trend Management Red color bars

This Super High Accuracy 200/50 EMA Trading Strategy – is suitable for trendy market. So you should not apply this strategy on ranging market area. You need to keep patience for more profit from this trend trading strategy.

The best time frames are H1, H4, and Daily. If you use on H1, you can set 250-350 (5 digits brokers) pips to take profit.

For trailing stop strategy, you should close half position when you get 250 pips, then you need to move stop loss at the entry point. Then you can wait for more pips. If you can catch a solid trend, then you can gain 800-1000 pips.

You should give stop loss below or above recent support or resistance.

You can put stop loss below 200 EMA for a LONG entry. Similarly, you can set stop loss above 200 EMA for a SHORT entry.

Торговая стратегия «Double EMA»

Double Exponential Moving Average (DEMA) is a smoother and faster Moving average developed with the purpose of reducing the lag time found in traditional moving averages.

DEMA was first time introduced in 1994, in the article «Smoothing Data with Faster Moving Averages» by Patrick G. Mulloy in «Technical Analysis of Stocks & Commodities» magazine.

In this article Mulloy says:
«Moving averages have a detrimental lag time that increases as the moving average length increases. The solution is a modified version of exponential smoothing with less lag time..»

DEMA indicator formula

DEMA default period (t) = 21.

DEMA is not just a double EMA.
DEMA is also not a moving average of a moving average.

It’s a combination of a single + double EMA for a lesser lag than either of the original two.

How to trade with DEMA

DEMA can be used instead of traditional moving averages or the formula can be applied to smooth out price data for other indicators, which are based on moving averages.

DEMA can help to spot price reversals faster, comparing to regular EMA.
Such popular trading method as Moving average crossover, will gain a new meaning with DEMA.

Let’s compare 2 EMA crossover vs 2 DEMA crossover signals.

DEMA MACD for MT4

Some of Mulloy’s original testing of DEMA indicator was done on the MACD, where he discovered that the DEMA-smoothed MACD was faster to respond, and despite producing fewer signals, gave higher results than the regular MACD.

Besides MACD, DEMA smoothing method can be applied to various indicators.

Patrick G. Mulloy says:
«..Implementing this faster version of the EMA in indicators such as the moving average convergence/divergence (MACD), Bollinger bands or TRIX can provide different buy/sell signals that are ahead (that is, lead) and respond faster than those provided by the single EMA..»

Comments

Hi, I like to make EA (Expert Advisor) using DEMA. The DEMA formula I made below looks like incorrect, because I test it and it losing money. Could you please tell me the correct one. My name is Jeffrey and my email is jyoungaus(at)yahoo.com.au . Thank you.

double ema1 = iMA(NULL,PERIOD_H1,14,0,MODE_EMA,PRICE_CLOSE,0);
double ema1a = iMA(NULL,PERIOD_H1,14,0,MODE_EMA,ema1,0);
double ema2 = iMA(NULL,PERIOD_H1,28,0,MODE_EMA,PRICE_CLOSE,0);
double ema2a = iMA(NULL,PERIOD_H1,28,0,MODE_EMA,ema2,0);
double dema1 = (ema1 * 2) — ema1a;
double dema2 = (ema2 * 2) — ema2a;
if(dema1 > dema2)
if(dema1 trader

Hi, I am unable to see the macd charts of dema. Whenever I open it shows olny blank indicator windows. I have tried all the options that I can try only as a basic user of MT4 as I am not good in coding.

Can you please help me solve this problem? what is the problem that it shows only blank indicator windows of this dema MACD only. other indicators are working and showing fine.

go to input change false instead true

Whats the process for installing DEMA in MT4? Av tried coping the download but it didnt work. U are doing a great job. Your presentation is jargonless. olatunde. email:[email protected]

Лучшие брокеры бинарных опционов за 2020 год:
  • Бинариум
    Бинариум

    1 место — лидер рейтинга! Бесплатное обучение и демо счет!
    Контроль честности и надежности!
    Получите бонус за регистрацию на сайте Бинариум:

  • ФинМакс
    ФинМакс

    2 место в нашем рейтинге. Надежный брокер!

Добавить комментарий