When it comes to exit strategies, you have many options. This is a lot more profitable than using a single time frame and is a strategy that many people, including me, use to generate profits regularly. You are trying to identify pairs in strong trends on two long time frames and then open a position when you get an EMA crossover in the same direction on one of the short time frames because this is an example of an excellent probability trade. Still, it’s generally more profitable to use longer time frames if you can because the price moves can be pretty small on the smaller time frames, which means that the spreads will eat into your profits. If you like, you could also look for strong price movements on the 1-hour and 15 minute time frames and then enter a position when you get an EMA crossover on the 5-minute chart. Indeed, another upward EMA crossover the next day would also have been profitable, but we always like to trade the first ema crossover whenever possible.
It then crossed over upwards once again when the chart trend resumed, which was a perfect entry point: For example, you might look for a solid upward move on the daily and 4-hour time frame, wait for a retracement on the 1-hour chart, and then enter a long trade when the EMA (5) crosses over through the EMA (20) on this same time frame when the longer-term trend prevails.Īs an example, the USD/JPY had a strong move upwards on the 4-hour and daily chart the previous month and was starting to make trend nicely upwards before it retraced back nicely with a down EMA crossover (5 crossing the 20) on the 1-hour mt4 chart. One of the great ways is to use multiple mt4 time frames. This is not a foolproof forex trading strategy by any means because there will be times when you will get false ema crossovers that don’t turn out to be the start of a new chart trend, but there are ways to increase your winning chances of success.