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.

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.



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