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EZ Trend Forex Trading Strategy

Trading is easy but very difficult to master. This is the paradox of trading in the Forex market. The truth is that trading is easy to understand. The concept is very simple. Buy low then sell high. Find opportunities where prices are low and could rise, trade, wait for prices to rise, exit and repeat the process. If you can do this consistently, then you are well on your way to making a lot of money trading forex.

However, this is easier said than done. Traders aim to do the same, but most end up doing the exact opposite. You buy high and then sell low. That's definitely not what they want to do. However, as the price moves along the path towards the desired exit, the price will oscillate up and down, causing traders to see their profits or losses go up and down. It creates a rollercoaster of an emotional journey. Emotional highs and emotional lows, fear and greed all come into play and cause traders to make mistakes.

Some try to solve it by finding different solutions and different strategies they think they should follow to avoid this painful loss experience. What they don't realize is that the more they try to fit decision levels into their strategy, the more confusing and complicated their trading plan becomes. The more complicated their plans, the more likely they are to make mistakes.

The EZ Trend Forex Trading Strategy, on the other hand, works the other way around. It approaches the market in the simplest way. It trades simple crosses and confluence of momentum and trend reversal signals using several highly complementary technical indicators.

Zero angle EMA

The EMA Angle Zero is a trend-following technical indicator based on the slope of the exponential moving average (EMA).

The moving average indicator is mainly used to identify the trend and direction of the trend. There are many ways to identify trends based on moving averages. One of the most popular ways to spot trends using a moving average is to look at the slope of the moving average line. The EMA Angle Zero indicator is based on this concept.

The EMA Angle Zero identifies the direction of the trend based on the slope of the EMA line. This is done by duplicating the underlying EMA line and pushing it forward. The indicator then looks for the difference between the leading EMA line and the lagging EMA line. The difference is then displayed as a histogram bar in a separate window. This creates an oscillator-type indicator that identifies the direction of the trend based on whether the slope of the line is positive or negative.

The Zero Angle EMA draws positive light green bars to indicate uptrend direction and negative yellow bars to indicate downtrend direction. It also attracts fire brick bars when the slope of the underlying EMA line is below the threshold to identify a trending market.

EMA's cross 5-10-34

EMA 5-10-34 Crossover is a trend reversal signal indicator based on the crossing of the Exponential Moving Average (EMA) lines.

As the name suggests, the 5-10-34 EMA crossover indicator signals a trend reversal when the 5-period, 10-period and 34-period EMA lines cross and stack so that the 5-EMA line is above or the 34th EMA is below indicating an uptrend, or the 5th EMA below and the 34th EMA above indicate a downtrend.

This indicator simplifies the process of identifying a trend reversal as it easily represents a signal arrow indicating the direction of a new trend. Traders can easily enter a trade whenever the indicator shows an arrow to profit from a new emerging trend.

trading strategy

This trading strategy is a systematic trend reversal strategy that trades at the confluence of price movement momentum, price movement crosses and moving average lines, and trend reversal signals coming from the two indicators above.

First, the EMA Angle Zero indicator should reverse direction based on the shift of the bar above zero. The bar should also change color to yellow or lime green depending on the direction of the trend to confirm that there is momentum behind the trend reversal.

At the same time, the 5-10-34 EMA Crossover indicator should also draw an arrow indicating the direction of the new trend, which coincides with the Angle Zero EMA indicator.

Price action must also cross the 50-period exponential moving average (EMA) line. The price action of the corresponding crossover should also show momentum in the direction of the new trend.