200 EMA Forex Strategy For Newbies Called Bucking The Trend

200 EMA Forex Strategy For Newbies Called Bucking The Trend

As a new forex trader, you need to learn how to identify the trend on the intraday charts. With a little practice using this 200 EMA Forex Strategy, you should be able to identify the trend on the different intraday charts. 200 EMA ( Exponential Moving Average) is one of the most popular and widely used technical indicator in forex trading.In order to use the 200 EMA Forex Strategy open the 4 hour, 1 hour and the 15 minute charts on your MT4 Platform. Now plot the 200 EMA on these 3 charts and color it red.Tile the three charts in a vertical fashion so that you can view the three charts one above the other. Now, scroll through the various currency pairs like the EUR/USD, GBP/USD, USD/CHF, USD/JPY, USD/CAD, EUR/JPY, AUD/USD, NZD/USD, EUR/CHF or whatever pair you like to trade.Search for a currency pair that has the price action well above the 200 EMA on the 4 hour chart and the 1 hour chart but below the 15 minutes chart. Similarly, you can also choose a currency pair that has price action below the 200 EMA on the 4 hour and the 1 hour charts but above the 200 EMA on the 15 minutes charts.What this means is that the overall trend is up but the pair is temporarily going against the trend on the 15 minute chart and is currently in a retracement.Search for a suitable entry point by looking for a candle signal like a hanging man or a hammer. For example, a hammer marks the reversal off a bottom or off a support level. When you see the hammer, it means a good signal for making a long entry into the trade. Appearance of a hammer is a signal that the price action has exhausted its downward momentum and is about to resume its upward momentum. Similarly, when you see a hanging man, it is time to sell. You can identify these entry and exit point with other candlestick patterns too!Practice this simple forex strategy on your demo account. This is an easy exercise and can be done one or two times daily. It will not take more than a few minutes each time. After a little practice, you will see how powerful this simple forex strategy is.In short, what you will be doing is to find a currency pair that is bucking the overall trend on the 15 minutes chart in this 200 EMA Forex Strategy.

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