The system of technical indicators EMA and Momentum is well proven in the trend trading on Forex. Instruments work well with any assets on timeframes of 30 minutes or more. However, traders got the best results using the EMA + Momentum trading strategy with popular currency pairs (EURUSD, GBPUSD, USDJPY and USDCAD) on H1-H4 timeframes.
The system of indicators EMA + Momentum in the trade room IQ Option
How to apply the EMA + Momentum trading strategy on IQ Option platform?
Trader needs to select an asset, set a timeframe and run indicators in trade room to start trading with EMA + Momentum strategy. How to connect the EMA and Momentum indicators to the chart can be found by clicking on the links.
The main parameters of strategy:
- Asset: EURUSD currency pair
- Timeframe: H1-H4 (in the example, H4 will be adopted)
- Moving Average indicator: period 19; EMA type
Indicator settings Moving Average
- Momentum Oscillator: period 18; source is candle closing
Momentum Oscillator Settings
How to trade with EMA + Momentum strategy?
Trader needs to learn how to recognize signals to profitably open a trading positions using the indicator system:
- buy signal: the Momentum oscillator line intersections zero level upwards, and the candle on the chart closes above the EMA line;
- a signal to close a long position: the Momentum oscillator line has returned to zero level, and the candle on the chart closes below the EMA line;
Deal that is made at a buy signal
- sell signal: the Momentum line intersections zero level downwards, and the candle on chart closes below the EMA line;
- a signal to close a short position: the Momentum oscillator returned to zero level, and the candle on chart closes above the EMA line.
Deal that is made at a sell signal
This text describes all the conditions for applying the EMA + Momentum trading strategy. This system of indicators is popular with traders with different levels of training, since there is no need for special knowledge. Traders will be able to trade profitably on the IQ Option platform due to simple requirements and reliable signals from the strategy. However, users must stop trading, choose a different currency pair with trends, or use other instruments in the event of sideways movement. So this strategy is not effective during a flat.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
GENERAL RISK WARNING