The 3 EMA’s forex indicator is a trend following forex system that is visible in a separate window below the main activity chart.
This is a very popular trading system indicator to trade the majors, currency cross pairs and exotics.
It’s quite simple to understand how this exponential moving average system works:
The 3 EMA’s system indicator consists of 3 ema’s, one with short period (set at 10), one with medium period (set at 50) and one with longer period (set at 200).
Buy signal:
When the short EMA is aligned above the medium and long term EMA AND the medium is aligned above the long term EMA, this creates a buy signal.
Sell signal:
Conversely, when the short EMA is aligned below the medium and long term EMA AND the medium is aligned below the long term EMA, this creates a sell signal.
You can use the 3 EMA’s system indicator for any currency pair and timeframe.
Free Download
Download the “price-emas.mq4” MT4 indicator
Example Chart
The EUR/USD H1 chart below displays the 3 EMA’s forex indicator in action.
Basic Trading Signals
Signals from the 3 EMA’s forex indicator are easy to interpret and goes as follows:
Buy Signal: See description above on how to open a buy trade with 3 EMA’s.
Sell Signal: See description above on how to open a sell trade with 3 EMA’s.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
Download
Download the “price-emas.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (EMAShortPeriod, EMAMediumPeriod, EMALongPeriod) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Price
Installation
Copy and paste the price-emas.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)