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Trading EMAs, really? We know what you may be thinking…
However, what may seem too basic initially, turns into powerful concept when paired with trend confirmation, price action and daily bias filters.
EMA Bounce is an automated strategy that executes trades upon successful retest or recovery of EMA - few candles bellow and close above EMA for Bullish and vice versa for Bearish.
We suggest trading EMA 50 on 1 or 2 min charts because in strong trends this tends to be lowest EMA price action hits before it continues powerful trend, providing great opportunities. Open your chart, put EMA 50 and watch what happens around it in strong trends.
Parameters that make simple EMA stand out:
1) Minimum candle count above EMA
2) Maximum candles allowed bellow EMA for Bullish/above EMA for Bearish retest, bounce, recovery
3) One Time Framing
Trend confirmation: OTF, One Time framing, are 30 min bars trending?
Bullish OTF - 30 min bars making higher highs and higher lows (or higher lows only - non strict mode)
Bearish OTF - 30 min bars making lower lows and lower highs (or lower highs only - non strict mode)
4) Daily Bias - Daily Breakout, Look Above and Fail, Look Below and Fail
5) Minimum candles/time between trades
Great for after hours trading without economical data release and news chaos.
Trading EMAs, really? We know what you may be thinking…
However, what may seem too basic initially, turns into powerful concept when paired with trend confirmation, price action and daily bias filters.
EMA Bounce is an automated strategy that executes trades upon successful retest or recovery of EMA - few candles bellow and close above EMA for Bullish and vice versa for Bearish.
We suggest trading EMA 50 on 1 or 2 min charts because in strong trends this tends to be lowest EMA price action hits before it continues powerful trend, providing great opportunities. Open your chart, put EMA 50 and watch what happens around it in strong trends.
Parameters that make simple EMA stand out:
1) Minimum candle count above EMA
2) Maximum candles allowed bellow EMA for Bullish/above EMA for Bearish retest, bounce, recovery
3) One Time Framing
Trend confirmation: OTF, One Time framing, are 30 min bars trending?
Bullish OTF - 30 min bars making higher highs and higher lows (or higher lows only - non strict mode)
Bearish OTF - 30 min bars making lower lows and lower highs (or lower highs only - non strict mode)
4) Daily Bias - Daily Breakout, Look Above and Fail, Look Below and Fail
5) Minimum candles/time between trades
Great for after hours trading without economical data release and news chaos.