The EMA Forex Crossover System indicator for Metatrader 4 is a solid trading system that works on the crossover of 2 EMAs.
The indicator appears in the main MT4 chart window as green & red colored signal arrows.
The default periods used: faster EMA: 5, slower EMA: 6 (feel free to modify the default period).
The EMA Forex Crossover System can be categorized as a trend indicator that can be used in multiple ways.
Trade Idea
- Open a buy trade whenever the green signal arrow gets printed on the chart.
- Open a sell trade whenever the red signal arrow gets printed on the chart.
The EMA Forex Crossover System indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “ema-crossover-signal.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The example chart below displays the EMA Forex Crossover System MT4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the EMA Forex Crossover System indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: EMA
Does the indicator repaint? No.
EMA Crossover System + Stochastic 3 TF MT4 Day Trading Strategy
This day trading strategy combines the EMA Forex Crossover System Indicator with the Stochastic 3 TF Indicator to identify high-probability trade setups.
Designed for traders seeking to capitalize on intraday trends, this strategy is effective on timeframes such as M15, M30, and H1.
It is suitable for traders who prefer clear entry and exit signals with a focus on trend-following strategies.
The EMA Forex Crossover System Indicator provides visual signals when two EMAs cross, indicating potential buy or sell opportunities.
The Stochastic 3 TF Indicator offers confirmation by analyzing the Stochastic oscillator across three different timeframes, ensuring that the momentum aligns with the trade direction.
Together, these indicators help filter out false signals and enhance the accuracy of trade entries.
Buy Entry Rules
- The EMA Forex Crossover System Indicator displays a green arrow, indicating a potential buy signal.
- The Stochastic 3 TF Indicator crosses back above the zero level (blue histogram).
- Enter a buy position at the close of the candle when both conditions are met.
- Place a stop loss below the recent swing low support level to manage risk.
- Set a take profit target based on a favorable risk-to-reward ratio, or wait for a negative Stochastic cross.
Sell Entry Rules
- The EMA Forex Crossover System Indicator displays a red arrow, indicating a potential sell signal.
- The Stochastic 3 TF Indicator crosses back below the zero level (orange histogram).
- Enter a sell position at the close of the candle when both conditions are met.
- Place a stop loss above the recent swing high resistance level to manage risk.
- Set a take profit target based on a favorable risk-to-reward ratio, or wait for a positive Stochastic cross.
Advantages
- Combines trend-following signals with momentum confirmation for higher accuracy.
- Clear entry and exit points reduce ambiguity in trade execution.
- Suitable for intraday trading, allowing multiple opportunities within a trading session.
- Works effectively across various currency pairs and timeframes.
Drawbacks
- Signals may lag during rapid market reversals, leading to late entries.
- Can generate false signals during low volatility periods or consolidation phases.
- Requires discipline to stick to stop loss and take profit rules in fast-moving markets.
- Multiple timeframes analysis can be overwhelming for new traders.
- Frequent trades can increase trading costs if spreads or commissions are high.
Case Study 1: AUD/USD on M15
On the AUD/USD M15 chart, the EMA Forex Crossover System Indicator displayed a green arrow, signaling a potential buy.
The Stochastic 3 TF Indicator turned bullish.
A buy position was entered at the close of the candle.
The price moved favorably, reaching the take profit target, resulting in a gain of approximately 28 pips.
Case Study 2: USD/JPY on M30
On the USD/JPY M30 chart, the EMA Forex Crossover System Indicator displayed a red arrow, signaling a potential sell.
The Stochastic 3 TF Indicator crossed back below the zero level.
A sell position was entered at the close of the candle.
The price moved favorably, reaching the take profit target, resulting in a gain of approximately 32 pips.
Strategy Tips
- Focus on trading during the most active market hours for each currency pair to improve liquidity.
- Combine with support and resistance levels to refine entries and exits.
- Consider limiting the number of trades per session to avoid overtrading.
- Keep an eye on the correlation between pairs to avoid simultaneous exposure in highly correlated positions.
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Download the “ema-crossover-signal.mq4” indicator for Metatrader 4
