Crossover Strategy – To trade this method you need to use 3 indicators. I prefer to use 3 Exponential Moving Averages, that you can find on every broker that you choose. Remind that you can visit our Recomended Brokers page.
Use the settings below choosing different colors on your chart:
- EMA Period 10 – Close
- EMA Period 25 – Close
- EMA Period 50- Close
For a Sell Entry
EMA 10 must cross below both 25 and 50 EMAs.
For a Buy Entry
EMA 10 must cross above both 25 an 50 EMAs
Once that the EMA 10 crossed below (in case of the example above) you have 2 choices. Enter Sell after that the cross is completed or enter once that the EMAs are completely in this order: 50-25-10.
For an Up trend you can enter once that the EMA 10 crosses above or wait that the EMAs are in the order 10-25-50. I suggest to follow always trend of your asset and don’t risk counter trend entries.