Forex Trading Strategy using EMA & CCI Indicator by www.forexmentorpro.club

Forex Trading Strategy using EMA & CCI Indicator by www.forexmentorpro.club

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Forex Trading Strategy using EMA & CCI Indicator by www.forexmentorpro.club

hello and welcome to video 2 of your training in this video I just want to help you get the charts set up we're going to set up the charts in metatrader and then we're going to save them so that throughout the rest of these videos all you have to do is just click a button and you can bring up the charts for the system itself to begin with you're going to want to ensure that your charts look the same as ours to do this all you have to do is open up any chart and metatrader right click on that chart and then select properties and then you're going to want to change your background color to white you're going to want to change the bulk candle color to green and the bear candle color to red of some sort and that will make it so that your charts look similar to ours as you go throughout these videos I'm going to show you this on the metatrader platform as well in just a minute so if you don't want to do this just yet don't just to talk about the indicators we're going to be using with this trading system we're going to be using two separate indicators we're going to be using an EMA that's the exponential moving average 60 period so we're going to add an EMA 60 and we're going to make that blue on our charts and then we're going to add the CCI a 14 period or commodity channel index of 14 to the charts and those will be the two indicators used in this trading system when you're adding moving averages to your charts it's quite simple to do you just click the indicator button in the metatrader software and then go to trend and then select moving average and then we're also going to need to add a CCI which is also a trend indicator and again you just click the button go to trend and then to commodity channel index and let's just go into the meta trader platform itself right now and I'll show you how to set up and save your own charts ok so once you've opened up metatrader all you need to do is open a new chart window to do this just go to the market watch section on the left hand side and then select any currency pair right click on that and then click chart window that's going to open a new chart and at this point it doesn't matter which chart you use we're going to be using candle charts with this system to be able to see better so select candle from the top and then just zoom in a bit so that you can see the changes that you make and what they look like and then we're going to first set up the charts themselves so just right-click on a chart and then click on properties and then I want you to select white background change the foreground color maybe two black so that you'll be able to see your the prices and the dates and then go to bull candle and choose a green color then really matter which color green as long as it's green and forbear candles choose red and then finally i'm just going to change the bar up and bar down to the same colors bar up is green bar down is red and then that way if I use a bar chart it looks similar to my candle charts and then I'm just going to click OK and now we have a nice white background green candles up red candles down so it makes it easy to see exactly what's happening at any time just by looking at a chart and now we need to add some indicators to this chart in this system as I said we're first going to add an EMA so click the indicator button go to trend and then select moving average and we want to add a 60 period exponential moving average so its type in 60 beside period and then ensure that the ma method selected is exponential you do not want simple or smooth their linear weighted we want an exponential moving average and then just choose a blue color from the style and I like to personally choose one of the thicker lines so that it's easier to see when you're looking at the charts and then once you've done that just click OK and now we have an EMA 60 and the other indicator we're going to use in the system is the CCI indicator or commodity channel index indicator so again just click the indicator button up here go to trend it's another trend indicator and add the commodity channel index choose a color that will show up on the white background like black or possibly green or just something dark that will show up and you want to add the 14 period so that's what we're going to add right here and then just click OK and that's going to add your CC I indicator which just showed up right down here and those are the two indicators we're going to you on this chart I'm going to make my CC I a little bit smaller just by dragging that down and now it's time to save these charts we're going to want to save them so that we can apply them to any chart later to do that all you need to do is right click on the chart and then go to template and then select sev save template just like so and then type in whatever you want here i'm going to call this trading system 3 just name it something that you will remember and i'm going to click save and there we go we've saved our charts now if i open up any other chart in metatrader all i need to do to apply these my indicators and all of the properties that we just set to this chart I right click on a chart I go down to templates and then i select trading system 3 is what I just saved you would select whatever you named it as and then click that and there we go our charts come up on any single chart that we do that too so it makes it easy when you save it you can bring it up again and look at the same charts on any of the other currency pairs simply by opening a new chart right clicking and selecting the template if you follow the steps we just took in metatrader itself you should have charts on your screen that looks something like this now you have your EMA 60 and your CC I indicator these are both trend indicators this is a trend trading system you're going to want to trade the daily charts to begin with and we're going to show you how to do that in the next couple of videos and always be sure to save your charts and I showed you how to do that it's as simple as right-clicking on the chart a selecting template and then save template and then just naming it whatever you want and clicking save and that way you'll be able to bring these charts up again later for easy access as we go through the videos and finally just to give you an overview of what you're going to learn in the next videos the system as I said is a trend system trend system works well trading with the trends is always better than trading against them by trading with the trends we increase our chances of winning on our trades so for right now just open up a daily chart and metatrader apply your new chart to it and then move on to the next video to learn the rules of short trades and get some real examples of short trades hello and welcome to video three of your training in this video I just want to cover short trades and I'm going to give you some real examples of short trades we're going to go through the rules and then walk through some real examples using the meta trader platform so let's just begin with the rules for short trades we need two different criteria to be met to enter a trade with this system the first thing we're going to look for we want the price to close below the EMA 60 and when you're starting with the system you should be trading the daily charts as I said in the last video so if you don't already have a daily chart you should open one now and on that daily chart we want the price to close below EMA 60 that's our first criteria and then our second criteria is that the CCI value is lower than minus 100 if both those criteria are met we can then enter the trade and when we're entering a short trade we're going to enter with two lots or multiples of 2 which I'll talk about in video 5 but for now let's just say two lots and we're going to set a stop loss to protect ourselves from bigger losses we're going to use one of two rules to set our stop loss we're either going to set it just above the EMA 60 or we're going to set it 200 pips above the entry point in a faster-moving market you would probably use the 200 pip rule most of the time you'll probably set it just above the EMA 60 I would set it 20 pips back or something from the EMA 60 and use that and we're going to use whichever stop risks less money so in a faster-moving market where the EMA 60 was three hundred pips away from the entry point you don't want a pip or stop that big you would use the 200 pips rule at any other time you're going to set it just above the EMA 60 and then once you're in the trade we have two lots in when we enter we're going to exit the first trade at 200 pips profit so the first lot gets taken out when we reach 200 pips profit the easiest way of course to do that is to set a take profit level of 200 pips on your first lot traded and then for the second lot once this first lot is taken out we're going to set our stop loss to zero and then we're going to trail our stop at 200 pips for the second lot if you're trading software doesn't allow you to trail your stops just move the stop 200 pips ahead every time the trade moves 200 pips in your favor so for example once you were 200 pips ahead in the trade your first step would be to move your stop loss to the break-even point and then once you were four hundred pips ahead in the trade you would move it 200 pips more in your favor of course the easiest way to do it is to use a trading platform that allows you to use trailing stops okay with the rules out of the way let's talk about some examples I'm going to go through an example in the presentation here and then I'm going to show you some real examples on the meta trader platform itself so first of all we have a little chart window here we're looking at the part that I've highlighted in the screenshot we need two criteria to be met the price must close below the EMA 60 so looking here here's our EMA 60 and this is a daily chart and the price has closed below the EMA 60 so our first criteria is then met we then look at the CCI value at that same point in time so following our little red arrow all the way down here there's our minus 100 level right there and the CCI value is lower than minus 100 so that's our criteria met we can now enter the trade we're going to enter the trade with two lots so we're going to go short with two lots in this case here's our entry point we enter the trade with two lots and we set our stop loss at either 200 pips back of the entry point or just above the EMA 60 whichever risks less you're going to choose the one that risks less in this case it was only about 60 pips back to the EMA and I set my stop loss about 20 pips behind that so i'm using a stop loss of about 80 pips on this particular example and then once you're in the trade you're going to take profit on the first lot at 200 pips so assuming that the trade goes in your favor and hopefully it does the trade is going to go in your favor and you're going to set a take profit level on one lot at 200 pips and when that lot gets taken out when you get your first lot taken out and it's profitable we're going to set the stop for the second lot to the break-even point so you would move this line up here and set your stop at zero or at the entry point for your second lot that you've left in the trade and then you would trail your stop at 200 pips so set your stop to trail at 200 pips and then just let the trade go in this case it continued on down to here and then it came back up and at that point our trailing stop had been dragged down and we stopped out so let's take a look at a couple of real examples on the meta trader platform just to show this a little bit further and get you knowing how to really use this system well okay so looking here at our first short trade or sell trade example I'm looking at the euro US dollar on a daily chart and I'm looking on January 18th of 2010 there was a nice entry signal here it actually might have been a couple days before that looking at this 15th of january i believe is when this trade occurred and taking a look here we need to meet two criteria first of all we need the price point to be the daily clothes to be below the EMA 60 and in this case it has been for a few weeks or about a week actually and then looking down below we need the price point or the CCI to be below the minus 100 level and that did happen just after January 18th the minus 100 level is the line below the center line here so it closed below the CCI was below minus 100 at about this point here so if we were to enter this trade we would have entered at about 1.4 380 for the price level we would enter with two lots we would sell two lots and we would enter them separately we would set our stop loss on the both Lots put according to one of the two criteria we laid out before we either set it 200 pips back or just above the EMA 60 whichever risks less in this case looking at it from here you would probably set a stop loss at about 1.45 35 which is just above the ma 60 so that gives you a hundred and fifty five pips top so you're risking less than two hundred and that's what you would use on this trade so just to lay this out here we're going to enter at one point for 380 or approximately that my line isn't quite on there and we're going to set our stop loss at 1.45 35 just above the EMA 60 at the point where we're entering our trade going up from here we're just above the EMA 60 and we're going to set the take profit level on our first lot 200 pips ahead so in this case that would be at about 1.4 180 about this level right there and then we let our trade ride like that the trades either going to move against us or for us in this case it moved in our favor and our first slot was exited at one point for 180 would be would have been the level those 200 pips ahead at that point we would set our stop loss for the second lot to the break-even point so we would move our stop loss on the lot that we still have in the trade to the break-even point and we would set that to be a trailing stop at 200 pips behind and when you did that you would have stayed in this trade for a boat about a month and then it would have exited on the fifteenth of februari or around there at which point you would have stopped out it got brought down to here and then he would have stopped out here 200 stop split there and you would have stopped out at about 1.3 780 so about a 600 pip trade in about three weeks time actually so a nice profitable trade example and just to give you a good example of how to use this system let's take a look at one more example and just taking another example here i'm using the US dollar Swiss franc daily chart for this one and taking a look here we need to first establish that our criteria has been met and our criteria for a short trade is that the price has closed below the EMA 60 so in this case it has and the next criteria we need to meet is that the CCI indicator is below the minus 100 level and again that happened at this point here so this trade we entered at one point three to five five and we'd set a stop loss when we entered the trade we enter with two lots and we set the stop loss for both Lots either 200 pips behind or just above the EMA 60 in this case it happens to be about the same point so taking a look here we set our stop loss 200 pips back at one point three four five five and we set the take profit level on our first lot to 1.30 55 so 200 pips ahead that's the take profit on our first lot and we then let the trade run and it's either going to move for or against us in this case it moved for us and our first lot was taking out at 1.30 55 so 200 pips profit on that lot when that happened we moved our stop loss from the here to the break-even point at one point three 255 for the second lot and we let the second lot run in the trade and we trailed our stop at 200 pips and in this case it continued on and it continued way down dipped below the 2210 level and then moved back up and we stopped out at one point 2 339 so this trade ended up we made 916 pips on the second lot we made 200 pips on the first lot so about eleven hundred and sixteen pips on the trade total another very profitable trade and another excellent example of how to use this system to profit so now that you understand how to make a short trade with this trading system you should move on to video for and watch the examples for long trades the rules are largely the same except reversed but you should watch the video anyway and once you've done that then start to practice making short and long trades on metatrader the more you practice the better you're going to be at using this system and the easier it's going to be for you to earn big profits over time hello and welcome to video four of your training in this video we're going to cover long trades or by trades we're going to give you some real examples of using the system to make a by trade to begin with let's just talk about the rules for long trades largely they're the same as they were for short trades they're just reversed in this case we need to meet two criteria again but the criteria is slightly different we need the price to close above the EMA 60 that's our first criteria if that is met then we look for our second criteria which is the CCI value is above the 100 level associated for our second criteria to be met and at that point we can enter our by trade and once again when we enter the trade we enter a to lot trade or multiples of 2 which I'll cover in video 5 for now we'll just say to lot trade we set our stop loss at either just below the EMA 60 or 200 pips below the entry point and we're going to choose the stop-loss that allows us to risk less whichever of those two risks less for us that's the one we're going to use and once we're in the trade we exit the first lot at 200 pips profit so once the trade has moved in our favorite 200 pips we're going to exit our first lot and of course the easiest way to do that is just to set a take profit on one lot that you've traded and for the second lot once your first lot is profitable you move your stop to the break-even point and then you're going to trail your stop loss at 200 pips for the second lot and again if you're trading software doesn't allow trading trailing stops move the stop-loss 200 pips ahead every time the trade moves in your favor by 200 pips so let's just look at an example here and then we'll look at some examples on the charts to begin with in the highlighted area here we look for our criteria the price closes above the EMA 60 and looking here it has and the CCI value is higher than 100 so I've marked off the 100 level here and again the CCI is above 100 so our criteria is met we can now enter the trade and when we enter the trade we enter the trade with two lots so here's our entry point and we set our stop loss at either 200 pips back of the entry point just below the EMA 60 in this case we set it just below the EMA 60 it was only about a 60 pip stop the currency pair was in a strong uptrend but it wasn't moving quickly in this case and of course we choose the one that risk less and in this case we did and then once we're in the trade we take our first a lot out at 200 pips so the trade moves in our favor we SAT a take profit level of 200 pips on the first lot and at that point when that end or the exit point is hit for the first lot we move our stop loss to the break-even point so we would move our stop loss up for the second lot and has set it to break even and then we're going to trail our stop at 200 pips so as this trade continues in our favor the stop that we've set at break even point is going to move up with the trade and continually be 200 pips behind the price point and in this case it moved in our favor for a long while and we didn't actually stop out till way over here on this chart let's take a look at some real examples on the forex charts in the meta trader platform okay so looking at a trade example on the charts here i'm looking at the british pound u.s. dollar daily chart and we've got a real trade example here taking a look we need to look for our criteria before entering a long trade so once again our criteria is that the price has closed above the EMA 60 and that did so right here and at the same time we need to look for our next criteria which is the CC eye level must be above the 100 level so looking here that criteria is met as well so we enter this trade at one point 6071 and we set our stop loss either just behind the EMA 60 or 200 pips behind in this case it made more sense to send it just behind the MA 60s so we had an initial stop loss of 1.5 983 that's just over a hundred pips top then we set our take profit we enter with two lots we set our take profit on the first lot at 200 pips ahead to 1.6 271 and when that first lot was taken out we move our stop loss to the break even point for the second lot and we let the trade ride for as long as it can with a 200 pip trailing stop and in this case it did so for a but a month's time and then it turned around and moved against us and we ended up closing the second lot out at one point six eight seven five so that's about an 804 pip profit on the second lot plus the 200 pip profit on our first lot so a thousand and four pips profit on the total trade a nice profitable trade and an exact excellent example of a long trade let's take a look at one more example okay so taking in to look at another example here this time we're looking at the euro/us dollar daily chart and looking at another trade example we need to look for our two criteria first of all we need our price point to close above the EMA 60 and that happened here and we notice this trade the next day and the CC eye level was above the 100 level so looking here here's our 100 line it's above there we entered this trade at 1.48 23 and we enter with two lots and when we're entering the trade we need to set a stop loss and in this case 200 pips back and just below the EMA 60 are pretty close to the same point so we used a 200 pips top for this trade and we set our take profit level on the first lot to 200 pips ahead at one point 5 0 to 3 and the trade did continue in our favor our first lot was taken out at one point 5 0 to 3 and at that point we move the stop loss for our second lot up to the break-even point and we let the second lot ride in the trade it continued on for about two weeks time and it ended up stopping out at one point 570 for a couple of weeks late so on that trade on our second lot we made 881 pips on our first lot we made 200 pips so in about a two week trade we made a thousand and 81 pips on the trade another excellent example of a profitable trade using this system and by now you should have a good idea of how to make both short and long trades using this forex system so now that we've covered a couple examples of short trades and a couple of examples of long trades you should move on to video 5 to learn about the right time frames currency pairs and some advanced ideas with this forex system and then once you've finished watching that video make sure you practice using the system for a while you can practice it using a demo account for a couple of months would be an easy way to do it or if you want to get started faster you can also just practice looking for the signals using historical data on your charts practicing is important though so watch video 5 and then take the time to practice your trades

6 Comments

  1. Giggidygiggidy12

    can you use this setup on futures such as Gold Silver or indexes?

  2. When you say 200 pips as a stop loss etc, do you mean 20 pips which shows as 200 in MT4 or 200 which shows as 2000 pips within MT4?

  3. The thing that is worrying me and I'm new to trading and I have been studying for months about fx,is one thing I cant get my head around is the pip movements.Its great I see 1000 pip movents in few weeks  on your videos and other videos but the currency pairs used, generate 0.06 cents per pip right give or take a few,so multiplying that by 1000 pip movement is $60?  How does one make a worthwhile money out of this trading.for example if my account balance is $10,000 and most say risk between 1-2% on any one trade so lets say 1% hence using $1000 to trade with,say I did the same trade as in your example how would I calculate my profit on a movement of 1000 pips knowing each pip is worth .06 or less? basically will the bottom line be that would I need to risk more say $8000 per trade to realise some kind of better profit rate to make this worthwhile?but wont that totally go against risk management of using 1% ?il be forced to risk  80% of my money?sorry if ive confused you.i really want to do this full time,but I don't know how I can raise the value of pip without leveraging which I don't WANT to do.Thanks for your patience and time.(Basically how can I get my pip value up to have a decent return on a $1000 trade without leveraging or do I need to risk 80% of my money to get a better rate for any currency pair?)

  4. great videos,couple of questions is this only for a downtrend if price is below EMA60?so u short ALWAYS right? so does it hold  true  for an uptrend long call if price is above EMA60? and secondly why buy 2 lots,wont it be better just doing one trade?less commission costs right?and thirdly the second trade do u take that when you enter first?or do it after you  realise you've earnt profit and take 200 pips Then place another trade with the same parameters? and is it normally weeks for the realisation of pips to be made,im guessing its not couple of days right?many thanks if anyone can clear this up.cheers

  5. Thank you ED For yet another great informative Video , I use IB for Broker and have set up the charts using you system . FWIW With the default setting from your Vid I was able to set on the IB . This vid has been invaulable. Became a member of yours yesterday. So Looking forward to leaning from a master trader and steadily growing my acc,

  6. Jignesh Sakariya

    can we use this strategy in commodoty…..equity

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