Two EMA Channel Trading System uses Price Envelopes along with the Awesome Oscillators(AO) in order to establish a simple trading strategy that follows the market trend very closely and produces trade signal within the trend direction at the same time. The simplicity of its use and signal demonstrations offer a great advantage to the newbie trend-following traders.
Two EMA Channel Trading System can be applied to trade all kinds of forex currency pairs offered by the financial markets. Furthermore, this system works great at all sorts of timeframe charts within the Metatrader 4 forex trading platform.
Two EMA Channel Trading System Overview
Once you’re done with the installation of the System at the MT4 terminal, your trading chart will appear like the following image:
Two EMA Channel Trading System Anatomy
- Price Envelopes: This indicator applies multiple upper and lower bands around the price bars to create a price envelope that projects the possible high/low or dynamic support/resistance of the market.
- 233 EMA: It is a 233-day Exponential Moving Average used to identify the current status of the market trend. For bullish trend confirmation, a price must be closed above the EMA level successfully. On the other hand, price closing below the EMA level represents the confirmation of the bearish trend of the market.
- Awesome Oscillator(AO): Used to filter the market trend signals and validate the trade entry setups using its separate oscillator window. AO value turns positive means the validity of going long along with the confirmation of the bullish trend of the market. Conversely, AO carrying negative value represents the green signal for going short within the bearish trend of the market.
Two EMA Channel Trading System: Generally Accepted Use
- Price is supported by the lower Price Envelopes or breaks above the upper Price Envelopes
- Price holding its position above the 233 EMA level
- Awesome Oscillator remains positive in value
- Buy triggers when the above conditions are met
- Set stop loss below the current 233 EMA level
- Exit long/take profit whenever AO value turns negative
Also Read: Winning Profitable Trading System
- Price is resisted by the upper Price Envelopes or breaks below the lower Price Envelopes
- Price holding its position below the 233 EMA level
- Awesome Oscillator remains negative in value
- Sell triggers when the above conditions are met
- Set stop loss above the current 233 EMA level
- Exit short/take profit whenever AO value turns positive
[button-red url=”http://www.forexadmin.com/wp-content/uploads/2019/02/Two-EMA-Channel-Trading-System.zip” target=”_blank” position=”center”]Free Download Two EMA Channel Trading System[/button-red]