This is a simple forex trading strategy that involves observing the pattern of three exponential moving averages. It’s a simple trading strategy that can be effectively applied on any time frame as well as any currency pair, but is most effective on the 15 minute or hour charts. Here’s a look at the indicators we’ll be using:

Currency Pair: any

Time Scale: any (preferably 15 min-1 hour)

Indicators: 10 EMA, 25 EMA and 50 EMA

Entry point: when the 10 EMA crosses the 50 EMA, buy/sell in either direction

Exit Point: when the 10 EMA crosses the 25 EMA in the opposite direction of current trend, exit the trade

In this trading strategy, we are going to use the crossing of the 10 and the 50 EMA on the 15 minute charts as our entry point. You then follow the trend for as long as the 10 EMA is above/below the 25 EMA, per the direction of your trade. Here’s an example of your entry guidelines:

In this particular example on the EUR/USD 15 minute charts, we are preparing to sell the EUR/USD when it the 10 EMA crosses the 25 EMA as it serves as our warning signal in this trade. When it crosses the 50 EMA, that’s a confirmation of the trend and a point of entry into the trade. At that point you want to pull the trigger and hold on until the 10 EMA rebounds back into the 25 EMA. This particular trade could have yielded a 200 pip profit in this particular instance.

Keep in mind this particular strategy is designed for trending markets. If the market is range bound, this trade will not work and could actually lose money. Watch for a large formation of a reversal when the markets appear to be moving in large waves and this particular method could prove to be very profitable.

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