Asymmetric EMA Deviation is a Moving Average oriented forex trading indicator, well-known for its all-round performance over determining the market trends and identifying the overbought/oversold conditions of the market. Therefore, from swing traders to trend-following market participants, everybody can apply it for enhancing the trading performance.
Asymmetric EMA Deviation can be applied to trade all kinds of forex currency pairs. However, this indicator suits well with minutes to hourly timeframe charts thus work best for scalping and intraday trading purposes.
Asymmetric EMA Deviation General Overview
After installing the indicator at the MT4 terminal, your chart will appear like the following image:
Asymmetric EMA Deviation: Interpretation
- Asymmetric EMA: Appears as moving average, Asymmetric EMA works as a trend definer. Its value holding above the neutral level indicates the trend as bullish. For the bearish trend, the EMA value must turn into negative. This tool can also be used to identify the overbought/oversold conditions of the market. It reaches above 1.1 means the overbought condition and dives below -1.1 to signal the oversold condition of the market.
- Asymmetric Bars: It works as a trend filtering tool. Asymmetric Bars plots positive bars represents the validity of the bullish market trend. Contrarily, the bars turn negative means the confirmation of the bearish market trend.
Continue Reading: Build an Ideal Forex Trading Strategy
Asymmetric: Buy Rules
- Asymmetric EMA holds above the zero level
- Asymmetric Bars turn positive
- Activate the buy entry when the above conditions are met
- Set stop loss below the recent low of the market
- Exit long/take profit whenever both Asymmetric EMA and Bars turn negative
Asymmetric: Sell Rules
- Asymmetric EMA holds below the zero level
- Asymmetric Bars turn negative
- Activate the Sell entry when the above conditions are met
- Set stop loss above the recent high of the market
- Exit short/take profit whenever both Asymmetric EMA and Bars turn positive