200 EMA And 15 EMA crossover trading strategy

This 200 EMA And 15 EMA crossover trading strategy is a trend trading system that uses two exponetial moving averages, the 200 ema and the 15 ema.

The 200 ema acts as a filter in that you will only look to take buy trades when price is above the 200 ema line. Or you will only look to take sell trades when the price is below the 200 ema line.

The 15 ema is the indicator that signals a buy or a sell when price comes back to it and touches it.

 

BUYING RULES

  1. Price must be above the 200 ema line
  2. 15 ema crosses 200 ema and goes up
  3. wait for price to come back down to touch the 15 ema
  4. look for bullish reversal candlesticks to go long when price touches the 15 ema by placing buy stop pending order at least 2 pips above the high of a bullish reversal candlestick.
  5. place stop lost at least 2 pips below the nearest swing low.
  6. for take profit, use the previous swing high point…if none is available, aim for a risk:reward of 1:2 or more.

200 EMA And 15 EMA crossover trading strategy

SELLING RULES

  1. Price must be below the 200 ema line
  2. 15 ema crosses 200 ema and goes down
  3. wait for price to go back up to touch the 15 ema
  4. look for bearish reversal candlesticks to go short when price touches the 15 ema by placing sell stop pending order at least 2 pips below the low of the bearish reversal candlestick.
  5. place stop lost at least 2 pips above the nearest swing high.
  6. for take profit, use the previous swing low point…if none is available, aim for a risk:reward of 1:2 or more.
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200 EMA And 15 EMA crossover trading strategy

DISADVANTAGES of The 200 EMA And 15 EMA crossover trading strategy

  1. in a ranging market, there’s going to be a lot of false signals
  2. ema’s a lagging indicators…price moves ahead before a sell or a buy signal is generated later.

ADVANTAGES of The 200 EMA And 15 EMA crossover trading strategy

  1. easy trading system to understand and follow
  2. in a strong ranging market this trading system can make you a lot of pips.
  3. this is a good swing trading system
  4. risk:reward of this forex system is also good

200 EMA and 15 EMA crossover forex trading system

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2 Responses

  1. Darren Blackwell