Simple Trend Retracement Forex Trading Strategy

Simple Trend Retracement Forex Trading Strategy is a combination of multiple Exponential Moving Averages used to plots crossover signals for both trade and trends of the market. You can call it a universal trading strategy since it works on all kinds of forex currency pairs and supports all sorts of trading styles. Besides, it can be applied to trade on any timeframe chart you like within the MT4 forex trading platform.

Simple Trend Retracement Forex Trading Strategy demonstrates the trade signals and the trend direction in a pretty simple way. This is why it is easy to master and apply for real trading purposes, especially for newbie traders.

Simple Trend Retracement Forex Trading Strategy Overview

Install the strategy on your MT4 terminal and find your chart like the image below:

Simple Trend Retracement Forex Trading Strategy Overview

Simple Trend Retracement Forex Trading Strategy Explanation

Simple Trend Retracement applies three Exponential Moving Averages of 10, 15, and 50-day periods respectively. A bullish crossover is confirmed when 10 EMA value turns greater than 15 EMA.

Contrarily, 15 EMA value turns higher than 10 EMA means the bearish crossover of the market trend.

Simple Trend Retracement Forex Trading Strategy Explanation

The 50 EMA is the ultimate trend decider. You need to determine the market trends depending on whether the price is closing above or below the 50 EMA.

Scalpers may use 15 EMA as stop levels however, we recommend you to better reply on 50 EMA as your trend stop level instead of 15 EMA for better consistency in trading performances.

Also Read: XM Broker Review

Simple Trend Retracement: Buy Conditions

Simple Trend Retracement Buy Conditions
  • 10 EMA moves above 15 EMA
  • Price closes above the 50 EMA level
  • Buy triggers after the above conditions are met
  • Set stop loss below the current 50 EMA position
  • Exit long/take profit whenever 15 EMA value turns greater than 10 EMA

Simple Trend Retracement: Sell Conditions

Simple Trend Retracement Sell Condtions
  • 10 EMA moves below 15 EMA
  • Price closes below the 50 EMA level
  • Sell triggers after the above conditions are met
  • Set stop loss above the current 50 EMA position
  • Exit short/take profit whenever 10 EMA value turns greater than 15 EMA
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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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