The simple EMA Crossover Signal generates buy and sell trading signals based on the crossover of 2 exponential moving averages with different period settings.
- A buy signal occurs when the fast EMA crosses above the slow EMA from below
- A sell signal occurs when the fast EMA crosses below the slow EMA from above
The default indicator period settings are set to 5 (fast EMA) and 6 (slow EMA).
The settings above are ok if you want to scalp in the direction of the overall currency trend.
In this case, you will need to add a longer-term trend indicator to the charts and only open buy/sell positions in the direction of the overall trend.
The best trading sessions for scalping are the London and New York trading sessions.
Change the indicator’s period settings to, for example, 5 (fast EMA) and 200 (slow EMA) if you want to use the indicator as a standalone buy/sell signals indicator.
Experiment with its period settings to suit your trading style.
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Download the “ema-crossover-signal.mq4” MT4 indicator
Indicator Chart (GBP/USD H1)
The GBP/USD 1 Hour chart below displays the Simple EMA Crossover Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Simple EMA Crossover Signal MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Buy when the Simple EMA Crossover Signal indicator paints a green arrow on the MT4 chart. Place a protective stop-loss a few pips below the most recent swing low.
Sell Signal: Sell when the Simple EMA Crossover Signal indicator paints a red arrow on the MT4 chart. Place a protective stop-loss a few pips above the most recent swing high.
Trade Exit: Use your own method of trade exit.
Simple EMA Crossover + SuperTrend NRP Forex Strategy
This trading method aims to capture moves when momentum aligns with the main trend.
The Simple EMA Crossover Signal Indicator generates green arrows for potential buy entries and red arrows for potential sell entries.
The SuperTrend NRP Indicator acts as a trend filter: when its line is green, the overall bias is bullish, and when the line is orange, the bias is bearish.
This setup is well-suited for M15, M30, and H1 time frames.
It appeals to traders who prefer clear visual signals combined with trend confirmation.
The SuperTrend filter helps avoid choppy counter‑trend entries, while the EMA crossover arrow provides a precise entry trigger.
Together, they give structure and clarity to entries and exits.
Buy Entry Rules
- SuperTrend NRP line must be green (bullish trend).
- Simple EMA Crossover must show a green arrow.
- Enter a buy trade at the open of the next candle after the arrow appears.
- Stop loss goes below the most recent swing low or a recent minor support level.
- Close the trade when the SuperTrend line turns orange or when the price reaches the next resistance area.
Sell Entry Rules
- SuperTrend NRP line must be orange (bearish trend).
- Simple EMA Crossover must show a red arrow.
- Enter a sell trade at the open of the next candle after the arrow appears.
- Stop loss goes above the most recent swing high or a recent minor resistance level.
- Close the trade when the SuperTrend line turns green or when the price reaches the next support area.
Advantages
- Trend filter from SuperTrend keeps entries aligned with market direction.
- Crossover arrows provide clear and easy‑to‑follow entry signals.
- Chart stays simple and uncluttered, making it easier to scan setups.
- Applicable to many forex pairs and suitable for intraday trades.
- Good for traders seeking quick entries without waiting through long signals.
- Structured rules help avoid emotional decision‑making.
Drawbacks
- A valid trend move can occur without a crossover arrow, so some profitable moves may be missed.
- Stop losses may become wide on volatile pairs or around news times.
- Requires discipline to only take setups that meet both conditions (trend + arrow).
Case Study 1
On USDJPY H1, the SuperTrend line turned green, indicating a bullish trend.
A green arrow appeared from the Simple EMA Crossover Signal at 154.72.
A buy trade was opened on the next candle at 154.74 with the stop loss placed at 154.42 below the recent swing low.
Price climbed steadily and reached the next resistance area at 155.23.
The trade closed for a profit of 49 pips.
The alignment of trend direction and crossover arrow provided a clear and reliable entry.
Case Study 2
On AUDUSD M15, the SuperTrend line changed to orange, signaling a bearish trend.
A red arrow formed from the Simple EMA Crossover Signal at 0.6678.
A sell trade was executed on the next candle at 0.6676 with the stop loss set at 0.6700 above the recent swing high.
Price dropped swiftly to 0.6635, hitting the support zone where the trade was closed.
The move yielded 41 pips. The combination of trend filter and crossover signal ensured a precise and profitable scalp.
Strategy Tips
- Prefer major pairs with tight spreads for better execution.
- Check higher time frames (H4 or H1) first to understand the broader trend before scalp trading.
- Wait for the candle to close before entering to avoid fake signals.
- Base stop loss and target levels on recent swing highs/lows or support/resistance zones rather than fixed pip amounts.
- Keep a trade log to review which currency pairs and time frames perform best over time.
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Download the “ema-crossover-signal.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (faster EMA, slower EMA) 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
