FOREX TRADING

Forex Exponential MA- Weighted MA strategy

What do you need:

1. one hour or 30 minutes timeframe
2. 18-period EMA and 29-period EMA (draw them using red)
3. 5-period WMA and 12-period WMA (draw them using yellow)

18 and 29-period EMA are two red lines which form a tunnel,this facilitates you to anticipate the trend. 5 and 12-period WMA shows you when to enter the trend, and how strong the trend is on a short term.

Once the red tunnel is narrow, or the two lines become only one line, you had better open a position according to the following rules:
1. Go long when the 5 and 12-period WMA are crossed, the red tunnel is up.
2. Go short when the 5 and 12-period WMA are crossed, the red tunnel is down.

Close your positions according to the following rules:

1. The price reached the high, and 5-period WMA goes under 12-period WMA. Close all your long positions.
2. The price reached the bottom, and 5-period WMA goes beyond 12-period WMA. Close all your short positions.

Once the red tunnel is crossed, close all your positions, because a trend reversal is about to come.