4 EMA and Channel Trading System For MT4

4 EMA and Channel 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 4 EMA and Channel Trading System For MT4 is developed to trade in the H4 and daily timeframe. Those who have knowledge about price action trading strategy can merge the idea of candlestick patterns with this system to improve the efficiency of this system.

Since this trading strategy focuses on dynamic channel breakout, retail traders can maintain a decent risk to reward ratio. Moreover, the retail traders have to deal with less noise while using this system since the trade setups are identified in the H4 and daily chart.

FREE 4 EMA and Channel Trading System

Download the FREE 4 EMA and Channel Trading System for MT4.

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

 

The 4 EMA and Channel Trading System For MT4

The system includes EMA's with four different values. The EMA or Exponential Moving Average is very useful as we can determine the trend direction by using the slope.

The EMA focuses on the most recent price; therefore, it can provide a more reliable price direction than the Simple Moving Average. Let's see the main indicators used in this system:

• Exponential Moving Average (EMA) 4, 12, and 23.
• EMA 50.
• EMA 10.

After you install the indicators, it will allow you to choose values from 9 different options. Choose between Close and Low from the EMA setting just like the below image:



Traders usually think that channels provide a price zone that is drawn with some straight lines. But it better to consider these price zone as dynamic levels to find the trade signals.

But, dynamic levels are not fixed like static levels; it moves with the price and works as an immediate support or resistance level. The same concept applies to The 4 EMA and Channel Trading System For MT4.

Try to use the dynamic EMA as it will provide a more reliable price direction. On the other hand, using different EMA with different periods will create a simple structured price channel in the main chart. Once the price breaks the channel, you can expect decent volatility.


Before proceeding to the trading strategy, let's have a look at the chart.

Buy Trade Setup with the 4 EMA and Channel Trading System For MT4

After installing the necessary indicator, you should be looking for the trade signals in the major currency pairs. Once you become comfortable with the system, you can use the system to trade any financial instrument. Lets see the conditions to execute our trade.

• Timeframe: H4 or Daily
• Currency Pair: This strategy works well in all currency pairs but we will start with the major currency pairs.

To enter a buy trade using this trading strategy, the following conditions need to be checked.

1. Calculate the 4, 12, and 23 bar Exponential Moving Average (EMA) on the closing price.
2. Later on, calculate the 50 and 10 Bar EMA on closes and another 10 bar EMA on lows.
3. For the long trade setup, the price should be trading above the 50 EMA.
4. EMA 12 should be above EMA 23.
5. EMA 4 should have an ascending slope.

Entry

After confirming all these five conditions, you should execute the long trade as soon as the H4 or the Daily candle closes above the EMA 23.
Try not to take the trades when the size of the candle is excessively big. Usually, the price tends to retrace a bit after such candles.

 

Stop Loss

In the dynamic price channel, 50 EMA remains works as the lowest point. Therefore, the price level of 50 EMA is the last hope of this trading strategy to work.

Therefore, it is better to put the stop loss below the 50 EMA. Price breaking below the 50 EMA will invalidate the trade setup.

 

Take Profit

The traders may close their trade after the EMA 12 crosses below the EMA 23. It is an indication that the market is getting ready for the bearish reversal. And those who have a better understanding about the trailing stop loss, can trail their stop loss by relating the position of the price with respect to support and resistance.

 

Sell Trade Setup with the 4 EMA and Channel Trading System For MT4

Let's see the critical conditions that we need to assess for the short trade setup.

• Timeframe: H4 or Daily
• Currency Pair: This strategy works well in all currency pairs but we will start with the major currency pairs.

Execute the short trades by evaluating the below conditions.

1. Calculate the 4, 12, and 23 bar Exponential Moving Average (EMA) on the closing price.
2. Later on, calculate the 50 and 10 Bar EMA on closes and another 10 bar EMA on lows.
3. The price of the asset should be trading below the 50 EMA.
4. EMA 12 should be placed below EMA 23.
5. EMA 4  should have a descending slope.

Entry

Execute the short trade once all the conditions are fulfilled. But try to avoid taking the trades when you have a big bearish or bullish candle.

 

Stop Loss

Since the 50 EMA works more like resistance level, it is better to place the stop loss above this level. Try not to change the stop-loss price as it may make things worse.

 

Take Profit

You can close the trade when the EMA 12 crosses above the EMA 23. If necessary, you can also move the stop loss point to the break-even point and ride the bearish trend.

 

Summary of the 4 EMA and Channel Trading System For MT4

The 4 EMA and Channel Trading System For MT4 use simple EMA formations in the trade identification process. Carefully evaluate the position of the EMA and its slope so that you can determine the best signals. And if possible, try to maintain a minimum 1:2 risk to reward ratio in each trade. Trading with a negative risk to reward ratio or closing the trades early may impose stress while using this strategy. The new trader should make themselves comfortable by using this strategy in the demo trading environment. By using the system in the demo account, they can learn the core functions of this system without risking any real money.

Download the complete system description and the files here:

FREE 4 EMA and Channel Trading System

Download the FREE 4 EMA and Channel 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.