My 34 EMA Crossover - For the Monthly contest

Philosophy of this system
to take on trending movements, and especially not to be labor intensive, when the prices move over the 34EMA its been said that the price is reversing, so im catching those medium term movements.
I like this because its not intensive, it usually requires less then 1hr per day (sometimes 5Mins). it works off the 1hr chart, this system seems to trigger on a weekly or fortnightly basis.

on the 1 hr and daily chart, place a 5 EMA / 34 EMA. Add a RSI and Stoch and MACD. (All default settings).

Entries and Exits
The Daily chart is used as a directional filter. when the 5 EMA is above the 34 EMA, then only seek Long trades, when the 5 EMA is below the 34 EMA, only seek Short trades.
On the 1hr Chart watch for a crossover of the 5 EMA over the 34 EMA (in the direction of the daily filter). Place a open order 20 pips past the close of the candle. (above if Long and below if Short).

Stop Loss and PT
the Stop Loss goes at the previous Trough in a long, Peek in a short. The PT goes to the previous Peek in a long, and Trough in a short. I also include a Trailing stop at the same size as the SL.


What are the RSI, Stochastic and MACD used for?

You have not mentioned them


Additional confirmation of Market Condition.
(With emphasis on ‘additional’ … that’s all RSI, Stoch, and MACD are good for.)


What currency pairs does this system work on?

this is a great little system but alls you need is one of the confirming indicators since they all say the same thing they all lag price alittle but they all confirm price atcion they are all based off either EMA’s or MA’s but lag price by a few candles which some times is bad but some times is good to make sure the direction of price held. so i would choose your favooorie and use it weather it is Stoch RSI or MACD

1 Like

Hi paulaelli looking at the trade you did it looks like a nice set-up so simple and effortless but as Newbie can you help me to understand something:

is your system automated in that when the EMA’ crossed over you received some sort of alert then went and
did the trade or did the system trigger and do the trade for you.

And Lastly were you using Real time data or EOD and if it was realtime, how did you monitor the system to see when the EMA crossover happened

Hi Paula,

Thank you for sharing your system. How long have you traded this system? Can you give us an idea of the strike rate (win/lose)?

Do the lagging indicators (RSI, Stoch & MACD) contribute that much as effective filters? Do you utilize RSI with a level 50 directional indicator or as levels 30/70 oversold/overbought?

Great trading!
Bob in Wisconsin

Thanks Paulaelli for sharing your information with other, Actually i tried it on EURUSD and it gives you good single 4buying and selling. but from what i can see on Euro shart that when you have a position sometime it doesnt give you a good signal to exit the market.
for example if you have signal to enter the market you will consider that you cant depend on the same signal to exit the market. so you wont be able to exit the market at the correct time as u will lose arround 10 to 15% from your profit can you explain to me on what i can depend for closing my position. thanks man for great work…

This is interesting. I like EMAs anyway. How long have you been trialing this? I’m interested that you picked 34 and not something lower around the mid 20s?

Also interested in the comment above in automating an alert when the lines cross. On some platforms you can do this but I tend use IG and you can’t - really annoying.

interesting i must say

good idea, i’ll give it a try. Thanks mate

May i ask why 34 MA?why not any other one?


This is similar to one of the systems I use, except mine is based around the M30 time frame and uses the MACD crossover.

Using different parameters and back testing EUR/USD, I found the 34 long EMA and 5 short EMA gave the earliest signals.

Of course, there are situations or periods when crossover systems just plain do not work well, giving lots of false signals.

However, there are many good, clear signals which can give consistent results.

Yupp you are right.I want you to know that after applying many trading systems and using different types of moving averages with different types of periods i have found the 34MA really useful.I don’t know what is the logic behind this.but really the cross of 5 and 34MA crossover system earlier and it gave me very good results.Well,Good luck for ya.

Hi, we liked this simple system and so one of our team members implemented it within the FXone platform. You can just download it and autotrade it in a demo trading account while you play with the parameters.

The file is attached, you can unzip it and the spreadsheet file can be loaded into the FXone trading platform…

Get the FXone platform free on the company’s website.

Here’s what the strategy file it looks like when you open it in FXone:

Have fun with this strategy, it’s simple and with the right settings could have some merit. (56.5 KB)

interesting, i came across this system elsewhere, how has everyone been doing with it ?

Hi Sandybeach,

We’re not tracking it ourselves at this point, we just thought people might like to try trading it within our fully automated trading platform FXone. If you decide to try it, please keep us posted, and as always, please let us know if you need any help.

So how do you guys decide on the exit?

There is no magic number. i think too many people (not saying yourself) go running after different possible numbers.

Hi Sandybeach,

The exit criteria is whichever of the following three things happens first:

  1. The trade signal direction changes
  2. The Stop is hit
  3. The Limit is hit

Rockyroad is right though, usually for a robust strategy any set of parameters within a certain range will deliver approximately the same results if the strategy is good, otherwise the performance may be an anomaly.