The 3 EMA’s forex indicator is a trend following forex system that is visible in a separate window below the main activity chart.
This is a very popular trading system indicator to trade the majors, currency cross pairs and exotics.
It’s quite simple to understand how this exponential moving average system works:
The 3 EMA’s system indicator consists of 3 ema’s, one with short period (set at 10), one with medium period (set at 50) and one with longer period (set at 200).
When the short EMA is aligned above the medium and long term EMA AND the medium is aligned above the long term EMA, this creates a buy signal.
Conversely, when the short EMA is aligned below the medium and long term EMA AND the medium is aligned below the long term EMA, this creates a sell signal.
You can use the 3 EMA’s system indicator for any currency pair and timeframe.
Download the “price-emas.mq4” MT4 indicator
The EUR/USD H1 chart below displays the 3 EMA’s forex indicator in action.
Basic Trading Signals
Signals from the 3 EMA’s forex indicator are easy to interpret and goes as follows:
Buy Signal: See description above on how to open a buy trade with 3 EMA’s.
Sell Signal: See description above on how to open a sell trade with 3 EMA’s.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
Download the “price-emas.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (EMAShortPeriod, EMAMediumPeriod, EMALongPeriod) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the price-emas.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)