EMA Levels is a free Metatrader 4 indicator that draws multiple EMA levels on the chart based on the H1, H4, and D1 time frames.
The indicator appears in the main MT4 chart window in the form of 3 colored lines (green, blue, and red).
The EMA Levels indicator can be used in multiple ways.
Trade Idea
- Open a buy trade as soon as the price closes above the blue EMA line and the major trend is up.
- Open a sell trade as soon as the price closes below the green EMA line and the major trend is down.
The indicator can be used for both trade entry and exit, or to confirm trading signals issued by your own strategy.
For scalping and day trading purposes, the indicator tends to produce the best results in the London and U.S. trading sessions.
The EMA Levels indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.
Free Download
Download the “ema-levels.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the EMA Levels 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 custom-built EMA Levels Forex 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 it repaint? No.
EMA Levels + EW Trend Scalping MT4 Strategy
This strategy combines the EMA Levels Forex Indicator (MT4) with the EW Trend Indicator for Scalping (MT4).
It is designed for short to medium time frames and aims to capture clean trend moves with limited risk.
The EMA Levels provide dynamic support and resistance, while the EW Trend indicator filters entries for high probability scalps and swing trades.
Intro
This method works because it aligns momentum with a clear price structure.
EMA Levels create zones where price often stalls or reverses.
The EW Trend indicator shows whether momentum favors buyers or sellers.
When both tools agree, the edge increases.
Use this on M5, M15, and H1. Traders who prefer fast decision-making will opt for M5 and M15.
Swing traders can use H1 to take stronger moves. It suits traders who want a simple rules set, tight risk control, and repeatable entries.
Buy Entry Rules
- Price must be above the main EMA level or bounce off a lower EMA level from the EMA Levels indicator.
- The EW Trend indicator must turn back above the zero level.
- Enter on the first bullish candle that closes above the bounce level or after a clear break and retest of the EMA level.
- Stop loss: place below the most recent swing low or below the EMA level used as the bounce reference (whichever is lower). Keep SL tight on M5, wider on H1.
- Take profit: target 1.5 to 2 times the risk for scalps. For swing trades, aim for the next EMA resistance level or a fixed 40–80 pips, depending on pair and timeframe.
Sell Entry Rules
- Price must be below the main EMA level or reject an upper EMA level from the EMA Levels indicator.
- The EW Trend indicator must cross back below the zero level.
- Enter on the first bearish candle that closes below the rejection level or after a clear break and retest of the EMA level.
- Stop loss: place above the most recent swing high or above the EMA level used as the rejection reference.
- Take profit: target 1.5 to 2 times the risk for scalps. For longer holds, use the next EMA support or 40–80 pips, depending on pair and timeframe.
Advantages
- Works across pairs and time frames with small adjustments.
- EMA Levels give visual zones for targets and stops.
- The EW Trend filter reduces false entries during chop.
Drawbacks
- Performance drops during strong ranging markets.
- Requires patience; some setups will be rare on higher time frames.
- Needs discipline to exit or scale out according to plan.
Example Case Study 1 — M15 EURUSD (Scalp)
Price bounced off the 50 EMA level shown by EMA Levels. EW Trend turned back above the zero level.
A buy entry was taken on the close of a bullish candle. Stop loss placed 12 pips below the swing low.
Take profit set at 24 pips for a 1:2 risk reward. Trade closed at the target. Result: +24 pips.
Example Case Study 2 — H1 GBPUSD (Swing)
On H1, the price broke above the main EMA level and retested it. The EW Trend indicator crossed back above 0.
A buy entry after retest with a stop 45 pips below the retest low.
Target was the next EMA resistance and a conservative 80 pip target.
Price moved in favor and hit the target over two trading sessions. Result: +80 pips.
Strategy Tips
- Trade pairs with good spreads and liquidity. Avoid exotic pairs for scalps.
- Adjust the stop and target to the timeframe. Smaller timeframes need tighter SL and lower TP multiples.
- Use a small fixed risk per trade, for example, 0.5–1% of equity.
- Consider partial exits: close half at 1:1 and move SL to breakeven for the remainder.
