The Double EMA Trading indicator for MT4 consists of two exponential moving averages with period set at 144 and 169 respectively.
The two EMA’s indicator creates a trading channel with bullish and bearish bias.
Signals from this Metatrader4 indicator are easily to spot:
Price action above the 2 EMA channel indicates price is bullish and traders look to open a buy trade.
Price action below the 2 EMA channel indicates price is bearish and traders look to open a sell trade.
The default EMA periods are set to 144 and 169 but can be changed to whatever you need.
The Double EMA Trading indicator can be used as a standalone forex indicator or mixed with other technical indicators.
For scalping purposes, use it on 5-minute charts during the most volatile trading sessions.
Free Download
Download the “begashole-indicator.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD 1-Hour chart below displays the Double EMA Trading Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Double EMA Trading MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open a buy trade position when price breaks and closes above both EMAs from below.
Sell Signal: Open a sell trade position when price breaks and closes below both EMAs from above.
Trade Exit: Use your own method of trade exit.
Double EMA + Forex Histogram Scalping Strategy for MT4
This scalping strategy combines the Double EMA Trading MT4 Indicator with the Free Forex Scalping Indicator MT4 to generate fast entry signals.
The Double EMA is used to define trend direction, while the histogram from the Free Forex Scalping Indicator provides momentum confirmation.
The strategy aims for quick trades on short timeframes, targeting small but frequent price moves.
Best used on lower-timeframe charts such as 1-minute (M1), 5-minute (M5), or 15-minute (M15).
Works well on major currency pairs with tight spreads and reasonable volume.
This approach is suited for disciplined scalpers who prefer compact trades with defined entries and exits.
Buy Entry Rules
- Wait until price breaks and closes above both EMAs from below, signaling a bullish trend.
- Confirm momentum: the histogram from the scalping indicator must turn green (buy signal).
- Enter a buy trade immediately after both conditions are met.
- Set stop loss a few pips below the recent swing low or just below the lower EMA to protect against reversals.
- Set take profit at a fixed small target (for example, 8–15 pips) or exit when the histogram turns red (sell signal), or price closes below the lower EMA.
Sell Entry Rules
- Wait until price breaks and closes below both EMAs from above, indicating a bearish trend.
- Confirm momentum: the histogram turns red (sell signal).
- Enter a sell trade immediately after both conditions are met.
- Set stop loss a few pips above the recent swing high or just above the upper EMA.
- Set take profit at a small fixed target (e.g. 8–15 pips) or exit when the histogram turns green (buy signal), or price closes above the upper EMA.
Advantages
- EMA trend filter helps align trades with market direction and reduces false entries.
- Histogram momentum confirmation provides quick, timely entries, which is ideal for scalping.
- Clear and simple rules make the strategy easy to follow under fast market conditions.
- Good for frequent small gains when the market is active and conditions are favorable.
Drawbacks
- In low volatility or choppy markets, price may whip around EMAs leading to false signals and losses.
- Frequent small trades mean spread and slippage can eat into profits if not managed carefully.
Example Case Study 1
On EUR/USD, 5‑minute chart: price closed above both EMAs, then the histogram turned green.
A buy trade was opened. The stop loss was set just below the lower EMA.
The trade captured 12 pips before the histogram turned red and the price closed back inside the EMAs, so the position was exited for a small profit but quick and clean.
Example Case Study 2
On GBP/USD, 1‑minute chart: price broke below both EMAs, histogram turned red.
A sell trade was executed with a stop loss above the upper EMA.
Price moved down, yielding 10 pips, then bounced slightly as the histogram flipped green.
Strategy Tips
- Limit trade duration; scalping works best when you exit quickly after small profits rather than holding too long.
- Use small position sizes because of the frequent trades and potential for multiple small losses.
By combining trend direction from the Double EMA with momentum confirmation from the histogram indicator, this scalping strategy seeks to identify clean, high-probability entries on short timeframes.
With solid risk management and disciplined execution, it can generate consistent small profits throughout the trading session.
Download Now
Download the “begashole-indicator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (EMA period 1, EMA period 2) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
