140# Three exponential moving averages trading system

3 EMA's trend following system filtered by WPR Slow

 

Submit by Mike 16/06/2013

 

This  trading system is a trend followin strategy based on three Exponential moving averages with levels (50 and -50). I have add also a filter: WPR Slow indicator but it is optional.

 

Time Frame H1 and 4H

Indicators:

Exponential Moving Average 5; (with levels 50; -50)

Exponential Moving Average 11;(with levels 50; -50)

Exponential Moving Average 50;(with levels 50; -50)

 

Indicators :

Exponential Moving Average 5-period (EMA5, Black color in the

illustrations with levels 50; -50);

Exponential Moving Average 11-period (EMA11, Blue color in the

illustrations with levels 50; -50);

Exponential Moving Average 50-period (EMA50, Green color in the

illustrations with levels 50; -50);

Fileter optional WPR Slow indicator

 

1.2. Rules for Buy Signals (Long Trades):

We must first establish that we’re in a strong uptrend using these 3

rules:

1.EMA50 and EMA11 are both pointing up.

2. EMA5 is above EMA11.

3. EMA11 is above EMA50.

When we have these three conditions, we know that we’re in an uptrend.

Re-Entry wait for the price to fall back, and touch the EMA50.

Filter optional:( Wpr slow indicator confirmed with red bar sell signals).

 

  • Stop Loss: We place a protective stop loss at -40 pips.

Profit Targets: When we have 40 pips in profit we exit one lot.

Move stop loss to break even . We then use a trailing

stop of 40 pips ,we move stop loss to 40 pips.

 

We can also move stop loss to the recent high each time price break that

high. That way, we can follow the trend until the end.

Tree moving averages trading system
Tree moving averages trading system

 

We know we’re in a strong uptrend because:

EMA50 and EMA11 are both pointing up, EMA5 is above EMA11, and

EMA11 is above EMA50.

 

Rules for Sell Signals (Short Trades):

We must first establish that we’re in a strong downtrend using these 3

rules:

1. EMA50 and EMA11 are both pointing down.

2. EMA5 is below EMA11.

3. EMA11 is below EMA50.

When we have these three conditions, we know that we’re in a downtrend.

Re-Entry wait for the price to fall back, and touch the EMA50.

 

Filter optional:( Wpr slow indicator confirmed with red bar sell signals).

 

- Stop Loss: We place a protective stop loss at -40 pips.

- Profit Targets: When we have 40 pips in profit .

Move stop loss to break even . We then use a trailing

stop of 40 pips .

We can also move stop loss to the recent low each time price break that low.

That way, we can follow the trend until the end.

 

Re-Enter long o Short when the price bounce 50 Exponential moving average channel.

See example

three moving averages trading system with filter WPR Slow
three moving averages trading system with filter WPR Slow
WPR Slow
WWPR Slow Indicator (filter indicator)
WPRslow.rar
compressed file archive 701 Bytes
Three exponential moving averages trading system
This trading system is a trend following strategy based on three Exponential moving averages with levels (50 and -50). I have add also a filter: WPR Slow but it is optional.
three exponential moving averages tradin
compressed file archive 729 Bytes

 

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