Fast moving EMA crossover strategy is another Forex trading strategy for day traders. The trading is based on fast moving EMAs to determine effective time to buy and sell the gold currency pair. EMAs are lagging indicators that help in establishing the new trend of the gold prices. This strategy provides good results when the market is trending (upwards or downwards) with big price swings. However, it may give a false signal if the price do not experience major swings.
Technical Indicators: 10 EMA, 25 EMA, 50 EMA, 1 Hour Candlestick Chart
Long Strategy:Buy gold currency pair when the 10-period EMA rises above the 25-period and 50 period EMA.
Short Strategy: Sell gold currency pair when the 10-period EMA falls below the 25-period and 50 period EMA.