200 EMA Forex Strategy For Newbies Called Bucking The Trend

The challenge for many new forex traders is to identify the overall trend on the intraday charts. The 200 Exponential Moving Average (EMA) can solve the problem for them. 200 EMA is one of the most popular technical analysis indicators amongst forex traders.

In order to use the 200 EMA Forex Strategy open the 4 hour, 1 hour and the 15 minute charts on your MT4 Platform. Now plot the 200 EMA on these 3 charts and color it red.

Tile the 4 hour, 1 hour and the 15 minutes charts on your screen vertically so that you can view all three with ease at one glance. Now, scan the different currency pairs like the EURUSD, GBPUSD, USDJPY, USDAUD, USDNZD, USDCHF or whatever you want to trade on these three charts.

What you are looking for is a currency pair that bucks the trend on the 15 Minute Chart. Now, if the price is well above the 200 EMA on the 4 hour chart, it is well above the 200 EMA on the 1 hour chart but it is below the 200 EMA on the 15 minute chart, you have found the pair that is bucking the trend on the 15 minute chart. Suppose, this is the USD/JPY pair.

What this means is that the price action is bucking the overall trend temporarily on the 15 minute chart.

On the 15 minutes chart search for a suitable entry point using candlestick patterns like the hammer or the hanging man.

Practice this simple forex strategy on your demo account. This is an easy exercise and can be done one or two times daily. It will not take more than a few minutes each time. After a little practice, you will see how powerful this simple forex strategy is.

So, in nutshell when you find the price action bucking the trend on the 15 minute chart while it is on the opposite side on both the 4 hour as well as the 1 hour chart, sit up and watch carefully to grab the opportunity to make a few pips.


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Mr. Ahmad Hassam has done Masters from Harvard University. Get this 1 Minute Forex Trading System FREE. Master these highly profitable Candlestick Patterns with this FREE 82 page PDF Candlestick Guide!