Channel EMA Trading System For MT4

Channel EMA Trading System For MT4

Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.

 

The Channel EMA Trading System For MT4 uses the concept of breakout, bounce, and rejection of critical levels. The developer of this system has made this system in a simple way so that everyone can master its use without going through complex training.

As a novice trader, you should not learn the key steps of this strategy with devotion. The system might provide easy solutions to trade the market but you have to know its functions properly.

FREE Channel EMA Trading System

Download the FREE Channel EMA Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

The Channel EMA Trading System For MT4

In this strategy, we will be using the channel formation and the EMA indicator as our key tools.

 

What is a Trading Channel?

A channel is formed by the two parallel lines. The efficiency of the channel tends to improve when it is drawn in a higher time frame. So, it is better to use this strategy in a higher time frame as the market noise is less.

There are two ways to trade the dynamic price channel- We can either buy at the channel support or sell at the resistance. Secondly, we can wait for the breakout to take our trades.

In The Channel EMA Trading System For MT4, the breakout trading system is often considered a bit aggressive but the risk to reward ratio is usually better than the conservative trading technique.

However, if you intend to trade the breakout, you should be looking for a clear signal. Wait for the closing of the candle above the channel support or resistance in order to consider it as a valid breakout.

Let's have a look at the settings of the indicators used in this strategy.

• Exponential Moving Average (EMA) 36 (high).
• EMA 36 (low).
• EMA 12

After installing the indicators, the chart looks like this:

How to Trade The Channel EMA Trading System?

In this trading strategy, three EMAs should trade in the same direction.  We know, the EMA focuses on the most recent prices where SMA focuses on the average price.

Therefore, 36 EMA will act as the major pivot level and the 12 EMA will act as the minor pivot levels.

Before learning to identify the trade signals, let’s see what other conditions should be met:

• Timeframe: It is better to use the system in the H1 chart or the higher time frame.
• Currency Pair: Try to find the trade signals in the major currency pairs. 

 

Buy Trade Setup with the Channel EMA Trading System For MT4

Let’s see the conditions to execute the long trade.

1. The slope in the EMA should be positive and the price should be making new highs.
2. The price should be trading above the 36 EMA.
3. The 12 EMA should cross above the 36 EMA, creating a bullish crossover.
4. Take the confirmation after the closing of the candle.

Entry

After the conditions are met, you can execute the long trade with low risk. try not to follow an aggressive attitude since no one can guarantee that a certain trade signal will generate profit.

 

Stop Loss

Since the 36 EMA will act as a strong support level, it is better to set the stop loss below the  36 EMA. However, if the stop loss exceeds 60 pips, you can avoid the trade signal.

 

Take Profit

You may close the trade when the price hits a major resistance level. But it is better to determine the closing price for the trade-in such a way so that the minimum risk to reward ratio for the trade stays 1:2 or more.

 

Sell Trade Setup with the Channel EMA Trading System For MT4

Let’s have a look at the conditions for taking the short trade.

1. The slope in the EMA should be negative and the price should be making new lows.
2. The price should be trading below the 36 EMA.
3. The 12 EMA should cross below the 36 EMA, creating a bullish crossover.
4. Take the confirmation after the closing of the candle.


Entry

After checking the conditions, we can take our short trade with low risk. The lot size should determine by using the regular risk management rule.

 

Stop Loss

Since the 36 EMA is going to act as a major resistance, we may place our stop right above the 36 EMA. 

 

Take Profit

To find the optimum position to close the trade, we can analyze the support level. It is better to place the take profit at the nearest support zone.

 

Summary Channel EMA Trading System For MT4

The trading strategy requires some simple steps. By following the key steps mentioned in this guide, it is possible to identify the potential trade signals. But we must be careful about our risk management rule. The Forex market is extremely volatile in nature and it can change its behavior without any prior notice. So, preparing ourselves for the worst-case scenario will be a wise decision. And we must not anticipate that a certain trade will definitely generate a positive result.

Download the complete system description and the files here:

FREE Channel EMA Trading System

Download the FREE Channel EMA Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Partially Automated Trading Besides Your Day Job

Alerts In Real-Time When Divergences Occur

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

Results From 5 Months!
This service starts soon! Be the first who get's notified when it begins!

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group


Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.