In here, you will learn the trading rules on how to use trade teh 200 exponential moving average with the Awesome Oscillator Indicator.

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Annabelle Holt
5 years ago
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system and therefore in a strong trending market, it has the potential to be really profitable.

1 Trading Strategy / Gert.Nurme@iBrokers.ee 200 EMA with Awesome Oscillator Introduction The 200 EMA With Awesome Oscillator Forex Trading Strategy is a very simple trend trading system and therefore in a strong trending market, it has the potential to be really profitable. In here, you will learn the trading rules on how to use trade teh 200 exponential moving average with the Awesome Oscillator Indicator. Works on any currency pair with timeframes 1h and upwards. Indicators needed for this strategy: EMA 200 and Awesome Oscillator (basic settings).

2 SELL Setup A. Price must be (a)travelling below the 200 ema and head up to touch the 200 ema or (b) crossed down from above the 200 ema line and there s a bearish candlestick closing above the 200 ema. B. The Awesome Oscillator must have a red bar or must be below the 0.00 level. C. The sell signal must be a bearish candlestick (a) that forms after touching the 200 ema and bouncing back down or (b)crossed from above the 200 ema and closed below the 200 ema line. D. Place a sell stop order 2 pips above the high of that bearish candlestick (if the spread is huge, increase this to between 3-5 pips) E. Place your stop loss 2 pips above the high of the nearest swing high, which ideally should be the top of the candlestick that touched the 200 ema where it bounced back down from or 2 pips above the low of that bearish candlestick where you place the pending sell stop order if that stop loss is not too close to get you stopped out prematurely F. For take profit target price level, aim for the previous swing low point or you can use a risk:reward of 1:2 or more

3 SELL setup visual: EUR/USD 1h Chart: EMA200 and Awesome Oscillator

4 BUY Setup A. Price must be (a)travelling above the 200 ema and head back down to touch the 200 ema or (b) crossed up from below the 200 ema and there s a bullish candlestick closed above the 200 ema. B. The Awesome Oscillator must have a green bar or must be above the 0.00 level. C. The buy signal must be a bullish candlestick that forms after touching the 200 ema and bounced up or crossed from below the 200 ema and closed above the 200 ema line. D. Place a buy stop order 2 pips above the high of that bullish candlestick (if spread is huge, increase this to between 3-5) E. Place your stop loss 2 pips below the low of the nearest swing low, which ideally should be the bottom of the candlestick that touched the 200 ema and bounced back up from or 2 pips below the low of that bullish candlestick where you placed the pending buy stop order if that stop loss is not too close to get you stopped out prematurely F. For take profit target price level, aim for the previous swing high point or you can use a risk:reward of 1:2 or more

5 BUY setup visual: EUR/USD 1h Chart: EMA200 and Awesome Oscillator

6 DISADVANTAGES OF THE 200 EMA With Awesome Oscillator Trading Strategy 1. in a ranging market, you will get false signals. 2. if you have price crossing from up to down and closing below the 200 ema line, the risk is that price may do minor reversal (head back up) and take out your stop loss order. 3. price goes before lagging indicators, therefore your trade entries are taken after price has moved some distance already. ADVANTAGES OF THE 200 EMA With Awesome Oscillator Trading Strategy 1. the use of 200 ema in this strategy smooths out the lot market noise 2. simple, easy to understand and execute 3. it is a really good swing trading system 4. the risk:reward ratio of this trading system are great as you can see from the charts above if you target previous swing lows or swing highs as your take profit target levels. 5. you can use tight stop loss trading technique with this system especially when price touches the 200 ema and bounces up or down.

If you have traded forex long enough, you will notice that sometimes, price has an uncanny ability to reverse exactly at or around fibonacci levels.

If you have traded forex long enough, you will notice that sometimes, price has an uncanny ability to reverse exactly at or around fibonacci levels. Fibonacci Forex Trading Strategy With Reversal Candlesticks The Fibonacci forex trading strategy with reversal candlesticks is simply about using fibonacci retracements in conjunction with reversal candlesticks.