Two Moving Average Crossover

This trading strategy is both simple and effective. You can trade a few currency pairs or even other markets together to get some diversification. This will increase your chance of catching a trend and reduce the effects of whipsaws and trading ranges.

Place 12 EMA and 30 EMA on USDJPY chart. Timeframe will be 4H.

For longs:
Long entry signal appears when the faster EMA, which is the 12 period one in this case, cross above the slower 30 period EMA at the close.
Create Buy order 2 pips above the high and stop loss will be 2 pips below the low of the same bar.
For shorts:
When at close, 12 EMA has crossed and gone below 30 EMA.
Create sell order 2 pips below the bar with stop loss 2 pips above the high.

This is an ‘always-in’ trading strategy. If you are long, you will exit and go short when a sell signal appears.

This strategy works well on longer time frames, 1H, 4H and Daily charts.
If you trade on daily time frames, you can check all the charts once a day nad setup orders if you find signals. A less stressful yet profitable scenario!

2 ema cross

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