Emas and MACD Trading System For MT4

Emas and MACD 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 Emas and MACD Trading System For MT4 is developed based on the moving averages and MACD indicator. The moving average is used to determine the trend direction and its strength. On the other hand, the functions of MACD are closely related to the trade filtering process. By using this strategy, you can expect to find potential trade signals in any currency pairs. Prior to that, you must learn the functions of this system properly.

 

FREE Emas and MACD Trading System

Download the FREE Emas and MACD Trading System for MT4.

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

 

The Emas and MACD Trading System For MT4

The Exponential Moving Average (EMA) is an important trend indicator that focuses on the most recent changes in the price. For example, if the price of an asset trades above 100 EMA, it means the buyers are dominating the market. But to find the entry point, we will be using EMA 20 and 50.

In order to execute a trade, all the EMA should have the same slope. We will be using the concept of EMA cross-over to determine the end point of bullish and bearish retracement.

 

Let’s see the indicators used in this trading strategy:

  1. Exponential Moving Average (EMA) 9 (Yellow).
  2. Exponential Moving Average (EMA) 20 (Chocolate).
  3. Exponential Moving Average (EMA) 50 (Violate).
  4. Exponential Moving Average (EMA) 200 (Red).
  5. Moving Average Convergence Divergence (MACD) Histogram (3,6,3)

After installing the indicators, the chart should look like this:



Indicators are just tool which gives you an indication. Never think the data taken from the indicator is an absolute reading. Our goal is to analyze the few important metrics and find the potential zone for trading.

 

Emas and MACD Trading System For MT4 - Bullish Trade Setup

To take the long trade, we need to check 3 important conditions. If these 3 conditions are fulfilled, we can take the long trade.

 

Bullish Trade Conditions

 

  1. The price should be trading above the EMA 200 and EMA 50.
  2. EMA 50 should cross above the EMA 200.
  3. MACD Histogram bars should be above the zero lines.



Entry

We can execute our long trade after checking all these conditions. According to the inventor of this trading strategy, retail traders can also rely on the price action confirmation signal to take their long trade.

 

Stop Loss

The EMA lines are going to act as a major resistance for the trading instrument. So, we can place our stop loss right above the nearest EMA line since it will act as a resistance level. If necessary, we can also use the nearest high to determine the stop loss point.

 

Take Profit

We can stick to our long trade till we get a bearish crossing in the EMA lines. For a more simple approach, traders can analyze the resistance level and set the TP.

 

Emas and MACD Trading System For MT4 - Bearish Trade Setup

To take the short trade, we need to check 3 simple conditions. Since the trade setups are analyzed based on EMA lines, we should be looking for the trade signals in the M15 or higher time frame only. By doing so, we can avoid the problems related to market noise in the lower time frame.

 

Bearish Trade Conditions

 

  1. The price should be trading below the EMA 200 and EMA 50.
  2. EMA 50 should cross down the EMA 200.
  3. MACD Histogram bar should be below the zero lines.

 



Entry

After checking the required parameter, we can take our short trade. But we should be careful about the lot size calculation. Since no system in the world can generate 100% profitable trade, we should not risk more than 2% of the account balance.

 

Stop Loss

The stop-loss price can be determined by analyzing the nearest EMA. The EMA levels are going to act as a strong resistance level. Those who have price action trading skills can use the Japanese candlestick pattern to determine the SL price.

 

Take Profit

The take profit is determined by analyzing the nearest low or major support level. We can also stick to the trade till we get a bearish crossing in the EMA lines.

 

Emas and MACD Trading System For MT4 - Summary

You might have realized that the system generates its signal mostly by using the crossover of the EMAs. Since EMAs are very sensitive to recent prices, we should be avoiding the trade execution during the major news release.  The steps mentioned in this system might seem very easy but we must make ourselves comfortable with the system by using the practice trading account. It will not be a wise decision if start trading with real money right after reading this guide.

Successful traders always prefer to make themselves comfortable with a new system. Since nothing is absolute in the Forex market, use this system in the practice trading account and see how it feels like to lose trades. Stick to the risk management rules and try to recover the losses in the practice trading account as it will boost your confidence level.

 

Download the complete system description and the files here:

FREE Emas and MACD Trading System

Download the FREE Emas and MACD 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.