200 EMA with Awesome Oscillator Trading Strategy - Advanced Forex Strategies (2024)

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Have you ever wanted to have a increase your winning ratio in trend trading?

Well, you’re in luck. In this strategy post, we will explore the 200 EMA with Awesome Oscillator Trading Strategy that can help you become an even more effective trend trader.

This strategy uses two indicators to make trading decisions:200 exponential moving average (EMA) and the Awesome Oscillator.

The 200 EMA is used to identify the overall trend, while the Awesome Oscillator is used to generate buy and sell signals.

With this strategy, you will be able to trade with the trend and make informed decisions based on market momentum.

So if you’re ready to become a better trader, let’s dive in.

What is the EMA Indicator?

The EMA indicatoris calculated by taking the exponential moving average of the security’s price over a 200 days.

The EMA indicator is often used in conjunction with other technical indicators, such as the RSI, to generate trading signals.

But in this strategy, we will combine the EMA with Awesome Oscillator.

The EMA indicator can be used to identify trend reversals, as well as to confirm trends.

When the EMA crosses below the security’s price, it is generally considered a bearish signal, and when it crosses above the security’s price, it is generally considered a bullish signal.

However, false signals can occur, so it is important to confirm any signals generated by the EMA indicator with other technical indicators or analysis tools.

The EMA indicator is a valuable tool for traders who are looking to enter or exit positions in a security.

By identifying trend changes early, traders can potentially avoid losses or capture profits.

However, as with any technical analysis tool, the EMA should not be used in isolation but rather in combination with other indicators and analysis techniques.

Why is 200 EMA significant?

The 200 exponential moving average (EMA) is a significant technical indicator used by traders to identify the overall trend of an asset.

When the 200 EMA is rising, it indicates that the asset is in an uptrend, and when the 200 EMA is falling, it indicates that the asset is in a downtrend.

The 200 EMA is also used as a support or resistance level.

When the price of an asset is trading above the 200 EMA, it is considered to be in an uptrend.

Conversely, when the price of an asset is trading below the 200 EMA, it is considered to be in a downtrend.

The 200 EMA can also be used as a confirmation tool.

For example, if the price of an asset is rising and crosses above the 200 EMA, it may be indicative of further upside potential.

Similarly, if the price of an asset falls and crosses below the 200 EMA, it could signal further downside potential.

Overall, the 200 EMA is a widely used technical indicator that can help traders identify trends and make better-informed decisions when trading assets.

What is the Awesome Oscillator?

The Awesome Oscillator is a technical indicator used to measure market momentum.

The indicator is calculated using the difference between the 34-period and 5-period simple moving averages of the midpoint price (H+L)/2. A buy signal is generated when the Awesome Oscillator crosses above the 0 line from below, and a sell signal is generated when it crosses below the 0 line from above.

The Awesome Oscillator can be used to measure market momentum in any time frame, but it is most commonly used on intraday charts.

The indicator is especially useful in markets that are not trending, as it can help traders identify potential turning points.

200 EMA with Awesome Oscillator Trading Strategy: Buy Rules

There are 2 types of Buy Rules.

One is a Trend Pullback Strategy.

And another to trade a Trend Reversal Strategy from Bearish to Bullish.

Trend Pullback Buy Rules

1. Price is above 200 EMA and falling back down to touch the 200 EMA line.
   Once this is triggered, we get our entry confirmation from the Awesome Oscillator.
2. Awesome Oscillator has to be either above the zero line or in green color.
3. Enter into long Position. You can also choose to set a Buy Stop Order at the high of the last candle.
4. Set Your Stop loss at the Swing Low.
5. Take Profit when Awesome Oscillator Bar becomes Red.

Trend Reversal Buy Rules

1. Price is coming from bearish territory and now breaking above the 200 EMA.
   Once this is triggered, we get our entry confirmation from the Awesome Oscillator.
2. Awesome Oscillator has to be either above the zero line or in green color.
3. Enter into long Position. You can also choose to set a Buy Stop Order at the high of the last candle.
4. Set Your Stop loss at the Swing Low.
5. Take Profit when Awesome Oscillator Bar becomes Red.

200 EMA with Awesome Oscillator Trading Strategy: Sell Rules

Trend Pullback Sell Rules

1. Price is below 200 EMA and going back up to touch the 200 EMA line.
   Once this is triggered, we get our entry confirmation from the Awesome Oscillator.
2. Awesome Oscillator has to be either below the zero line or in Red color.
3. Enter into Short Position. You can also choose to set a Sell Stop Order at the high of the last candle.
4. Set Your Stop loss at the Swing High.
5. Take Profit when Awesome Oscillartor Bar becomes Green.

Trend Reversal Sell Rules

1. Price is coming from bearish territory and now breaking above the 200 EMA.
   Once this is triggered, we get our entry confirmation from the Awesome Oscillator.
2. Awesome Oscillator has to be either above the zero line or in green color.
3. Enter into long Position. You can also choose to set a Buy Stop Order at the high of the last candle.
4. Set Your Stop loss at the Swing Low.
5. Take Profit when Awesome Oscillator Bar becomes Red.

Key Takeaways

200 EMA with Awesome Oscillator Trading Strategy is a simple but highly effective trend trading strategies.

Higher time frames will always be more reliable as it will automatically filter out noises.

If you like more trades, you can use 100 EMA or even 50 EMA.

However, if you see the price crossing the EMA a little too often then you need to use a higher EMA.

Price crossing the EMA too often just might get you stop out a little too often.

200 EMA with Awesome Oscillator Trading Strategy FAQ

1. What is the EMA with Awesome Oscillator trading strategy?
   The EMA with Awesome Oscillator trading strategy is a system that uses two indicators to spot potential opportunities in the markets. The first indicator is the Exponential Moving Average (EMA), which is used to identify the overall trend. The second indicator is the Awesome Oscillator (AO), which is used to generate buy and sell signals. This strategy can be used on any time frame, but it is most commonly traded on the 1-hour chart.
2. How can I use this strategy to trade forex pairs?
   Be sure to stick to the strategy rule as we have stated in this strategy post. You will do just fine.
3. What are the benefits of using this strategy?
   It helps you stay with the trend and it helps make you a disciplined trader who follows rules.
4. How do I set up my chart to use this strategy?
   You will need the 200 EMA indicator and the Awesome Oscillator Indicator. Both are included in your Metatrader 4 terminal.
5. What is the success rate of the 200 EMA with Awesome Oscillator Trading Strategy?
   This strategy has been good for us. It has a nice 65% win ratio for us in the 4 hour time frame.