Forex Trading Strategy with Williams and EMA

Every forex trading strategy is a combination from indicators and oscillators.
And under special circumstances recognize the perfect point to put a trading order in the forex market.
At this point traders have more possibilities to take profit.

When we are using a forex trading strategy our main purpose is to eliminate the risk and at the same time to maximize the profit.
We will analyze a simple and profitable forex trading strategy who used by many traders.
 
The forex trading strategy contains the following indicators :

• ΕΜΑ(20) - Exponential Moving Average of twenty (20) periods. Apply to close.
• EMA(40) - Exponential Moving Average of forty (40) periods. Apply to close.
• EMA(80) - Exponential Moving Average of eighty (80) periods. Apply to close.
• Williams% (21)
• Stochastic (10,5,5)

 We can apply this trend following forex trading strategy with any currency pair at one hour (1h) chart.
 

Buy rules

1. First of all we will determine the direction of the trend, that is really an uptrend. 
2. We will have an uptrend when the EMA(20) is over EMA(40) and EMA(40) is over EMA(80).
3. In an uptrend we will wait until the Williams R% goes under -80 and then back over -80.
4. We put a buy order in the market at the end of the hourly candle that brings the Williams% over -80.

Stop Loss

We put the stop loss under the last swing low point.

Exit for Buy Orders - Profit Targets

We exits 1/2 from our position after 30 pips profit. 

We exit the second 1/2 of the trade using trailing stop with the help of Stochastic. We wait the fast line of the Stochastic to cross below the slow line and then it crosses up again. We move the stop loss to the lower price in this area.

Sell rules

1. First of all we will determine the direction of the trend, that is really a downtrend. 
2. We have a sell setup when EMA(20) is under EMA(40) and EMA(40) is under EMA(80).
3. In a downtrend we will wait until the Williams R% goes over -20 and then back under-20.
4. We put a sell order in the market at the end of the hourly candle that brings the R% below -20.

Stop Loss

We put stop loss over the last swing.

Exit for Sell Orders - Profit Targets

We exits 1/2 from our sell order after 30 pips profit.
We exit the second 1/2 of the trade using trailing stop with the help of the Stochastic. We wait until the fast line of the stochastic crosses over the slow line and then it crosses down again. We mark the area between the crosses and move the SL to the higher price in this area.

Important : All investors should know that any forex trading strategy before implementing in a real account needs to be tested in a demo account in order to be fully understood.

Also, all traders should be aware that extraordinary events occurring in the forex market very often, and is likely to alter the financial results of a forex trading strategy.

Share