1. The first thing to do is to add EMA 21 to your 4-hour chart.
2. Second, add the EMA 13 to your 4-hour chart.
3. Finally, add the 8 EMA to your 4-hour chart.
Exponential Moving Average Day Trading Strategy is a trend following strategy. Thus, it requires a lot of patience such as waiting for pullbacks before executing your trade.
1. Let the 4-hour chart determine the direction. If the current 4-hour candlestick is below the EMA, we are only looking for selling opportunities. Likewise, if the current 4-hour candle is above the EMA, we are only looking for buying opportunities.
2. As illustrated above, the current candle of the 4-hour chart is below the EMAs. So we are now only looking for selling opportunities. After determining the direction, switch now to the 1-hour chart.
3. If the candlesticks in your 1-hour chart start to hit the EMA's, it's now giving a signal.
4. Place a Sell Order and put a 30 pip stop loss and a 40 to 60 target profit (according to your discretion or preference).
5. The white horizontal line represents our Entry Order, the red horizontal line as the Stop Loss (30 pips), and the gold horizontal line as our Target Profit (60 pips).
1. It's always best to at least 2 or all the 3 EMAs before entering the trade.
2. It takes timing, practice, and a lot of patience.