Last updated: May 8, 2025

2 EMA Channel Forex Trend Following Strategy

This is a strategy that uses any timeframe and uses moving averages, specifically Simple Moving Average, as the indicators.

Here are the SMA setups: 

• 60-period Simple Moving Average of the HIGHS
• 60-period Simple Moving Average of the LOWS
• 240-period Simple Moving Average of the HIGHS
• 240-period Simple Moving Average of the LOWS

Follow the recent trend when you trade and use MAs for reference.

Long Entry:

• SMA 60 must be above SMA 240. It must be going up.

Short Entry:

• SMA 60 must be below SMA 240. It must be going down.

Set stop loss below the low of the pullback for long and above the high of the pullback for short.
Take profit at a ratio of 1.5:1, it means taking the 1.5 initial number of pips. If you risk 100 pips, take 150 pips.