In this Article I am about to discussed various methods where you can use EMA for better trade entries and the rest depends on your accuracy how you find trend and how you work with it to find more and better trade Ideas. But you must kept one thing in mind that accuracy of EMA crossover totally depend on type of timeframe you use and best use of risk reward.
How to use EMA with Bollinger bands to trade Forex
In this chart, I have used EMA with Bollinger Bands and I always use to work only if there is enough dominant trend in one way and In the chart below we have see price manage to find a low and rise and there is atleast couple of strong moves.
First thing You need to find out is Watch out for break above 50 period EMA
Secondly, watch out for test of middle band and IF you want better entry then watch for second test IF first test failed to test band and second test closely waiting for band to touch the price and In such cases we manage to set pending limit orders with stops below last swing low as shown in the following chart.
Value of Risk Reward when You use EMA trading strategy
Before You research a system and want to test it for how much success You can have You need out find out situations where it work best and situation where it respond very badly. But IF you keep track of what you have manage to find out best in a trading system like this You have much better chance of Making much better earning from such system than you first anticipated.
