• Registered: 2008-03-26
  • Posts: 1

Topic: EMA cross

How to create 3EMA strategy in FSB ?

Indicators: 10 EMA, 25 EMA, 50 EMA.

Entry rules: When 10 EMA goes through 25 EMA and continues through 50 EMA, BUY/SELL in the direction of 10 EMA once it clearly makes it through 50 EMA. (Just wait for the current price bar to close on the opposite site of 50 EMA. This waiting helps to avoid false signals).

Exit rules: option1: exit when 10 EMA crosses 25 EMA again   or

option2: exit when 10 EMA returns and touches 50 EMA (again it is suggested to wait until the current price bar after so called ?touch? has been closed on the opposite side of 50 EMA).

strategy from : http://forex-strategies-revealed.com/trading-strategy-ema

Thanks.

  • Popov
  • Popov
  • Lead Developer
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  • From: Bulgaria
  • Registered: 2006-11-30
  • Posts: 7,885

Re: EMA cross

Opening (Entry Signal)

Open a new long position at the beginning of the bar when all the following logic conditions are satisfied:

- the bar opens above the Moving Average* (Simple, Close, 50, 0); and
- Moving Averages Crossover* (Close, Simple, Simple, 10, 25, 0, 0); the Fast MA crosses the Slow MA upward; and
- Moving Averages Crossover* (Close, Simple, Simple, 10, 50, 0, 0); the Fast MA is higher than the Slow MA.


Open a new short position at the beginning of the bar when all the following logic conditions are satisfied:

- the bar opens below the Moving Average* (Simple, Close, 50, 0); and
- Moving Averages Crossover* (Close, Simple, Simple, 10, 25, 0, 0); the Fast MA crosses the Slow MA downward; and
- Moving Averages Crossover* (Close, Simple, Simple, 10, 50, 0, 0); the Fast MA is lower than the Slow MA.


Closing (Exit Signal)

Close an existing long position at the end of the bar when the following logic condition is satisfied:

- Moving Averages Crossover (Close, Simple, Simple, 10, 25, 0, 0); the Fast MA crosses the Slow MA downward.

Close an existing short position at the end of the bar when the following logic condition is satisfied:

- Moving Averages Crossover (Close, Simple, Simple, 10, 25, 0, 0); the Fast MA crosses the Slow MA upward.



A same direction signal - Does nothing
An opposite direction signal - Does nothing
Permanent Stop Loss - None

[Opening point of the position]
Bar Opening
     Enter the market at the beginning of the bar
     Base price  -  Open

[Opening logic condition]
Moving Average
     The bar opens above the MA value
     Smoothing method  -  Simple
     Base price  -  Close
     Period  -  50
     Shift  -  0
     Use previous bar value  -  Yes

[Opening logic condition]
Moving Averages Crossover
     The Fast MA crosses the Slow MA upward
     Base price  -  Close
     Fast MA method  -  Simple
     Slow MA method  -  Simple
     Fast MA period  -  10
     Slow MA period  -  25
     Fast MA shift  -  0
     Slow MA shift  -  0
     Use previous bar value  -  Yes

[Opening logic condition]
Moving Averages Crossover
     The Fast MA is higher than the Slow MA
     Base price  -  Close
     Fast MA method  -  Simple
     Slow MA method  -  Simple
     Fast MA period  -  10
     Slow MA period  -  50
     Fast MA shift  -  0
     Slow MA shift  -  0
     Use previous bar value  -  Yes

[Closing point of the position]
Bar Closing
     Exit the market at the end of the bar
     Base price  -  Close

[Closing logic condition]
Moving Averages Crossover
     The Fast MA crosses the Slow MA downward
     Base price  -  Close
     Fast MA method  -  Simple
     Slow MA method  -  Simple
     Fast MA period  -  10
     Slow MA period  -  25
     Fast MA shift  -  0
     Slow MA shift  -  0
     Use previous bar value  -  No

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