【Everyone can understand trading signals】Clarify sense of direction to enhance trading edge! Easy method to read the trend with multi-timeframe EMA [Mottei]
Motty-san Profile
A full-time trader with 8 years of FX experience. Grasping the essence of the market, he hones trading skills by using a principled method that rides the trend. His main method is scalping. He actively shares information about trading on Twitter, helping to improve other traders' abilities as well.
Blog:http://motty-fx-trader.com/
Twitter:https://twitter.com/motty_gaytrader
※ This article is a reprint/re-edited version of an article from FX攻略.com, January 2020 issue. Please note that the market information written in the main text may differ from current market conditions.
※ The “points of strategy” and main text assume long positions in an uptrending market. In a downtrending market, the rules are reversed for short positions.
Key Points of the Strategy
- Strategy: Determine the trend using moving averages on higher and lower timeframes
- Trading timeframes: 5-minute chart + 1-hour chart, 4-hour chart
- Target currency pairs: Gbp-related pairs
- Advantage of this strategy: Clear entry basis and reduced risk
New
- When the EMA on the higher timeframe is trending up (1-hour EMA 20, 4-hour EMA 20), wait for an uptrend on the lower timeframe (5-minute chart)
- Touch the 1-hour EMA 20 or 4-hour EMA 20 (utilizing the Grandbill’s law), or aim for precise entries in the 5-minute trend
Stop Loss
- Place a stop order at the most recent swing low
Take Profit
- Place a limit order at the most recent swing high
Reading Market Flows to Increase Edge
The highly popular game trader Motty-san teaches a method that analyzes both higher-timeframe and lower-timeframe movements to strengthen the reason for entry and the edge. By observing not only the main timeframe but how higher timeframes are moving, one can judge the market flow from a holistic perspective and ride the trend.
For example, if the moving averages on the higher timeframes (e.g., 1-hour and 4-hour) displayed on the 5-minute chart are rising, you can judge it as an uptrend, increasing the likelihood of profitable long trades.
Since it only uses moving averages, it is easy for beginners to handle.
