Trading Strategy with EMA 100 Indicators for Daily Traders

The exponential moving average (EMA) indicator is used to correct the appearance of a simple moving average (SMA) that is lagging or tends to react slowly. This indicator can work well at all time frames and is often used by daily traders. The shorter the period used, the faster the EMA will react to price changes. One simple but popular strategy is the use of 100 period EMA at 1 hour time frame (1-hour).

With this strategy, traders will open positions in the direction of the trend, with the buy the dip method or sell the rally. The key to this strategy is to determine the direction of the trend with the ema 100 indicator.

This strategy uses daily and 4-hour (4-hour) time frames to determine the direction of the trend, and a 1-hour time frame to open a trading position:

1. On the daily chart, determine the direction of the trend by observing the price movement position against the 100 ema indicator curve. The trend on the daily chart is the main trend.
2. On the 4-hour chart, observe the direction of the trend to confirm the main trend.
3. Also observe the trend direction on the 1 hour chart. If it is in line with the main trend and trend on the 4-hour chart, then open a position with the buy method or sell the rally, which is buy when pull back or sell at the bounce.

Here's an example of trading on AUD / USD

From the daily chart and 4 hours above, it looks like AUD / USD is moving downtrend because on both charts the price moves below the EMA 100 indicator curve.

On the hourly chart, it looks like the price also moves below the EMA 100 indicator curve, or is downtrend, then we will wait for opportunities to open short positions. We will sell when the price bounces (moves reversed) after cutting the EMA 100 curve.

As a confirmation, the stochastic indicator can be used. Entry sell when the% K curve of the stochastic indicator intersects the% D curve from top to bottom. The stop (stop loss) level is determined around the highest level before the bounce, and the profit target is determined at the swing low or the closest support level.

Things to note:

1. If the trend on the 1 hour chart is different from the daily chart and 4 hour chart, then wait until the trend is in the same direction.
2. If the trend on the chart is 1 hour in line with the 4 hour trend but different from the daily trend, then temporarily avoid trading on the currency pair, because it can take days to wait for the trend on the 3 chart to be in the same direction.

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