Moving average crossover systems are very simple and very powerful. When combined with your MTB Pro Decision Points, they become a very effective trading system. In the following example you can see how these EMA ‘scan be used to keep you on the right side of the market as well as providing you with a few nice trading opportunities. But First watch the 5 minute Video below to see it in action on one of our Trade Plans from 05 Oct 2016 on ES Emini Futures. Further down this post is another example from the same day but on USDJPY.
You will need 2 Exponential Moving Averages. The settings are 9 Period (Fast EMA) and 21 Period (Slow EMA). These EMA’s will work on any time frame but in the examples listed below, we will be looking at them on a 5-minute chart.
Chart 1: Basic 5-Minute chart with decision points and EMA’s drawn. Chart is drawn using the TradingView.com free charting software. (Click on th Chart to Enlarge, then backspace to return to the Post)
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