Sunday, January 18, 2009

Forex Tips Strategy.

Forex EMA-WMA strategy
What do you need:

1. one hour or 30 minutes timeframe
2. 18-period EMA and 29-period EMA (draw them using red)
3. 5-period WMA and 12-period WMA (draw them using yellow)

18 and 29-period EMA are two red lines which form a tunnel, this helps you to predict the trend. 5 and 12-period WMA shows you when to enter the trend, and how strong the trend is on a short term.

When the red tunnel is narrow, or thew two lines form only one line, you should open a position according to the following rules:
1. Go long when the 5 and 12-period WMA are crossed, the red tunnel is up.
2. Go short when the 5 and 12-period WMA are crossed, the red tunnel is down.

Close your positions according to the following rules:

1. The price reached the high, and 5-period WMA goes under 12-period WMA. Close all your long positions.
2. The price reached the bottom, and 5-period WMA goes beyond 12-period WMA. Close all your short positions.

When the red tunnel is crossed, close all your positions, because a trend reversal is about to come.

2 comments:


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