Strategy crossing simple exponential moving averages
No doubt the simplest strategy and forex investors widespread among beginners is to define strategies based on the crossing of the exponential moving averages, also known as EMA.
The first step is to draw these moving averages on the chart of the currency pair to be analyzed. The period of the EMA should be different: 10, 25 and 50.
The entry decision is taken when the EMA 10 EMA crosses EMA 25 and still doing 50. The buy signal is generated when 10 EMA crosses down the other lines of moving averages.
The sell signal occurs when the 10 EMA crosses above the other lines of EMA.
Will proceed to exit the position when the 10 EMA crossing in the opposite direction to that made when entering the market EMA 25. The other option is to wait the 10 EMA crosses or keeping a light contact with the EMA 50.
The main advantage is that it is extremely easy to use and understand. Only use in markets with a very clear trend.