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Forex 4 Hour Stocastic EMA Trend Trading Strategy PDF
Forex 4 Hour Stocastic EMA Trend Trading Strategy PDF
Stochastic EMA
Trend Trading
Strategy
Getting Started
This trading strategy relies heavily on catching the trend. You
may have success using this strategy on as low as the one hour
chart or as high as the daily chart; however, I’ve had most
success trading it on the four hour chart. This strategy consists
of four indicators, which are:
1. 5 Period Exponential Moving Average (closed)
2. 15 Period Exponential Moving Average (closed)
3. 50 Period Exponential Moving Average (closed)
4. Stochastic indicator K=13 D=5 Smooth=5 (13,5,5) 80/20
Levels
Refer to the picture above to see how your chart should look
How to Trade
There are only two, yet very important rules to follow when
trading this strategy.
1. The K% line on the stochastic indicator MUST be above the
D% line when taking a BUY & the K% line MUST be below
the D% line when taking a SELL.
2. Both the 5 & 15 EMA MUST cross the 50 EMA going
upwards to create a BUY signal OR downwards for a SELL
signal.
☺ Happy Trading ☺