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200 EMA Forex Strategy - Easy For Beginners



Are you a rather new trader looking for a solid forex strategy?


A challenge facing work with traders when developing their forex strategy will be the ability in order to identify the overall trend for intra-day trading.


MACD is often a popular indicator for newbies but there's an even simpler one: The 200 EMA (Exponential Moving Average).


The 200 EMA is one of one of the most popular indicators of record with Forex traders the world over, as that reason alone will probably be worth noting a result of the psychological effect on the market place price possess when hovering around the 200 EMA.


Using The 200EMA Strategy


To take advantage of this very powerful Forex strategy, create charts on 3 time frames:


4 hour 1 hour 15 minute


Now plot a 200 EMA indicator on each chart and, as a suggestion, color it red, for easy visual influence.


Preferably tile the 3 windows containing your 3 charts straight into a vertical fashion so you can see the 3 time frames next 1 other. It will squeeze inside information on the charts somewhat but for that purpose of those strategy that does not matter.


Now scroll through several currency pairs you like to trade.


If you prefer to trade only pairs with an inferior pip spread, they comprise about several.


They are:


EUR/USD GBP/USD USD/CHF USD/JPY EUR/JPY USD/CAD AUD/USD NZD/USD EUR/CHF


What in order to looking for is any currency pair that bucks the 200 EMA on the 15 minute chart.


So for example, with the EUR/USD pair and note the task of price relative for the 200 EMA on the 3 time picture frames.


If price is well across the 200 EMA on the four hour chart, well higher than the 200 EMA on the 1 hour chart, but BELOW the 200 EMA on the 15 minute chart, price is bucking couple of.


The overall trend is up, price has temporarily gone with the trend especially currently within a retracement.


Using some form of trading principle of "buy the dips in an uptrend", "sell the rallies in a downtrend", discover a suitable entry point.


In the example given above ascertain look to opportunity spend money on the EUR/USD, perhaps watching for a candle signal that price has exhausted it's downward momentum, bucking the 15 minute chart 200 EMA and has decided to resume it's upward energy.


This a good easy exercise and it could be be done once or twice a day, taking just several minutes.


Watch For Price Bucking The Trend


Once find price bucking the 200 EMA along at the 15 minute chart, whereas it is on the opposite side within the 4 hour and one hour charts, crunch and be aware of. Watch carefully and grab the possibility to get in and make some pips.


After a little practice you'll notice how extremely powerful this simple Forex strategy is - certainly deserving the place in your trading tool resource.


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Get an useful free tip on how to change the MACD indicator for safe trading here:


http://www.realisticforex.com/forex-tools/forex-strategy-MACD-save-anxiety.html


For issue free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:


Free Forex Tools

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