Those who can trade in the forex market and make consistent money from forex don’t teach others. This is a common saying in the forex market. But I think this saying is not completely true. Traders who can earn money also sometimes try to teach others. If you trade with any profitable system like 34 ema wave strategy then In the market, money is not limited. If I can make money, you also can do. Who prohibits you from making money?
If I find any holy grail, I can also share it with others. I have no problem. But the problem is, is there really any holy grail in the forex market that newbies and sometimes even professionals look for. The answer is yes, there is. Today I will discuss the 34 EMA trading strategy, which is actually a holy grail of the forex market if you can use it properly with proper money management rules. All you need is patience.
Who thinks that the holy grail does not exist in the market? This article will be a big slap for them.
Trading plan to buy
If the price fully breaks the 34 ema and then again retrace back to 34 ema, then we will look closely at whether we find any engulfing bullish candle or not. If we find any engulfing bullish candle, then we will open a buy order. Our stop loss will be below the engulfing candle. Take profit must be twice the stop loss.
Sell trading idea/sell trading techniques
The price must break 34 exponential moving averages with a bearish candle and then retrace back a little. Then we will wait to get an engulfing bearish candle. This is our signal candle. If I get then will open the sell trade after breaking the low of the bearish candle. Our stop loss will be above the engulfing candle, and profit target levels must be twice the stop loss.
Take a look at the picture here
See how the price breaks the 34 ema and then comes again to it. When we find a strong engulfing candle, we will open a sell trade place stop loss at the high of the engulfing candle.
See how beautifully our profit target met.
Advantages of 34 ema wave trading strategies
- You can trade with the trend.
- you are using here price action rather than a fancy custom indicator
Disadvantages of 34 ema wave strategy
- Many times you find any swing points in the currenct market. If there are no swing level, then there is no trade.
- If you don’t understand the nature of the market, whether it is a choppy market or a trendy market, then you won’t be able to trade with this strategy as this trend trading strategy works best on the trendy market. In a sideways market, this strategy will give you many false signals. As this is not for choppy trading.
Time frame: only 1 hour and 4 hours chart are preferable. A daily chart and a weekly chart are not recommended.
Currency pair: only major pairs and jpy pairs are preferable
If you lose many times in the forex market and are searching for a holy grail system, then this simple but perfect 34 ema wave strategy can give you a solution. This system can pull a lot of pips if you use it correctly.
Don’t ignore fundamental news events and big news like FOMC, NFP. When these events happen, then stay away from the market or don’t apply this strategy, or one single trade can blow your whole account. Last but not least, money management is a must in forex. If you don’t have rock-solid money management rules, then you will never get success!