Trading strategy with the intersection of two moving averages

Trading Strategy from the intersection of two moving averages - a simple system that is based on the intersection of two standard indicators - fast EMA (exponential moving average or exponential moving average) and a slow EMA. You can also use our free expert advisor Adjustable MA for automated trading platform in MetaTrader.

Features

• A very simple strategy to use.
• Use of simple indicators.
• It is easy to identify stop-loss.
• Moving averages brake - a delay may be up to 10 bars.
• Is not effective during lateral movements in the market.
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Preparations for the trade

1. Any currency pair and timeframe.
2. Add the exponential moving average on the schedule, set its period to 9 apply to the closing prices (Close), set the color to red (optional) - this will be fast moving average (FMA).
3. Add another exponential moving average on the schedule, set its period to 14, apply to the closing prices (Close), set the color to blue (optional) - this will be a slow moving average (SMA).
4. 
   

Conditions of entry

• Buy when the FMA crosses the SMA below.
• Sell when the FMA crosses the SMA above.
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Conditions of Release

• Stop-loss for long positions is set at the lowest price level (Low) in the last bar before crossing. For short positions - at the level of the highest price (High) in the last bar before crossing.
• Take-profit depends on the stop-loss and should not be lower. I recommend setting take profit levels on a half or two stop-loss.
• If the response to the stop-loss or take profit there is a new crossing, close the position.
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Example:

As seen in the example, the input conditions are pretty clear and properly selected ratio of TP to the stop-loss, this strategy can be quite profitable.

Attention!

Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.