Trading
Strategy Using 16-EMA and 34-EMA
Time
Frame: 5 minutes or higher
Currency
Pairs: All
Indicators:
16-EMA, 34-EMA
Trading
Rules
EMA
Crossovers:
Bullish
Crossover: When the 16-EMA crosses above the 34-EMA, we look for
buying opportunities during pullbacks.
Bearish
Crossover: When the 16-EMA crosses below the 34-EMA, we look for
selling opportunities during pullbacks.
Entry
Criteria:
Long
Entry (BUY):
A
BUY Slingshot™ setup is identified when the price moves
significantly below both EMAs rapidly but then starts rising again
without the EMAs crossing.
Short
Entry (SELL):
A
SELL Slingshot™ setup is identified when the price moves
significantly above both EMAs rapidly but then starts falling again
without the EMAs crossing.
Stop
Loss
For
long trades, set the stop loss just below the lowest point of the
pullback.
For
short trades, set the stop loss just above the highest point of the
pullback.
Take
Profit Strategies:
Fixed
Ratio: Exit the trade when the profit equals the amount risked (1:1
risk/reward ratio).
EMA-Based:
Exit the trade on the first close below the 16-EMA for long trades,
or the first close above the 16-EMA for short trades.
This
strategy ensures that trades are only taken in the direction of the
overall trend as indicated by the EMA crossovers. It uses price
action in conjunction with moving averages to identify potential
entry points that align with the prevailing trend. By incorporating
specific stop-loss and take-profit mechanisms, it provides clear
guidelines for managing trades and mitigating risk.
