Donbashman
New Member
Introduction
Hey traders, I’d like to share a simple yet effective forex strategy that works well on major pairs like EUR/USD, GBP/USD, and USD/JPY. This strategy combines Exponential Moving Averages (EMA) and the Relative Strength Index (RSI) to catch strong trends and avoid false signals.
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Strategy Rules:
Indicators Used:
1. 50 EMA & 200 EMA – Identify trend direction.
2. RSI (14-period) – Confirm momentum and avoid overbought/oversold traps.
3. ATR (14-period) – Helps with stop-loss placement.
Entry Rules:
Buy Setup:
The 50 EMA crosses above the 200 EMA (Golden Cross).
RSI is above 50, confirming bullish momentum.
Enter after a candle closes above both EMAs.
Sell Setup:
The 50 EMA crosses below the 200 EMA (Death Cross).
RSI is below 50, confirming bearish momentum.
Enter after a candle closes below both EMAs.
Stop-Loss & Take-Profit:
Stop-Loss: Place SL at 1.5x ATR below/above entry price.
Take-Profit: Use a 1:2 risk-reward ratio (e.g., if SL is 50 pips, TP is 100 pips).
Trailing Stop: Move SL to breakeven once 50% of TP is reached.
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Example Trade (EUR/USD 1H Chart)
Buy Signal: 50 EMA crosses above 200 EMA, RSI at 55, price breaks resistance.
Stop-Loss: 30 pips below entry.
Take-Profit: 60 pips target.
Outcome: TP hit in 3 hours!
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Risk Management & Tips:
Risk 1-2% of your account per trade.
Avoid trading before high-impact news events.
Stick to London & New York sessions for best volatility.
Hey traders, I’d like to share a simple yet effective forex strategy that works well on major pairs like EUR/USD, GBP/USD, and USD/JPY. This strategy combines Exponential Moving Averages (EMA) and the Relative Strength Index (RSI) to catch strong trends and avoid false signals.
---
Strategy Rules:
Indicators Used:
1. 50 EMA & 200 EMA – Identify trend direction.
2. RSI (14-period) – Confirm momentum and avoid overbought/oversold traps.
3. ATR (14-period) – Helps with stop-loss placement.
Entry Rules:
Buy Setup:The 50 EMA crosses above the 200 EMA (Golden Cross).
RSI is above 50, confirming bullish momentum.
Enter after a candle closes above both EMAs.
Sell Setup:The 50 EMA crosses below the 200 EMA (Death Cross).
RSI is below 50, confirming bearish momentum.
Enter after a candle closes below both EMAs.
Stop-Loss & Take-Profit:
Stop-Loss: Place SL at 1.5x ATR below/above entry price.
Take-Profit: Use a 1:2 risk-reward ratio (e.g., if SL is 50 pips, TP is 100 pips).
Trailing Stop: Move SL to breakeven once 50% of TP is reached.
---
Example Trade (EUR/USD 1H Chart)
Buy Signal: 50 EMA crosses above 200 EMA, RSI at 55, price breaks resistance.
Stop-Loss: 30 pips below entry.
Take-Profit: 60 pips target.
Outcome: TP hit in 3 hours!
---
Risk Management & Tips:
Risk 1-2% of your account per trade.
Avoid trading before high-impact news events.
Stick to London & New York sessions for best volatility.
