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The 5 EMAs FOREX SYSTEM actually consists of two trading systems: a Day-Trading System and a Scalping System. Because a trading day in the FOREX market is 24 hours, it is reasonable to call it a day-trading system. In fact, most, if not all FOREX trading systems can be considered to be day-trading systems.A Day-Trading system is a system with one rule: you should not leave positions opened overnight; however, the FOREX market is open on an ongoing, 24-hour basis.Our main goal is earning 25-35 pips per day and this is possible because we have 24 hours to do it. We are going to use the following indicators: Trend lines of support and resistance
Exponential Moving Averages (period 5 high , period 5 low , period 20 close )
Stochastic Oscillator (5,3,3) MACD (12,26,9) RSI 10 Williams Percentage Range %14
Rules for the 5 EMAs FOREX SYSTEM-“Day-Trading” Do not trade before important fundamental news! Entry Rules for Short Positions: • The MACD (1-Hr chart) must have been below the zero line for at least 3 bars. The earliest entry point is the 4th consecutive bar below the zero line. • Wait for the price to touch the 5 period ЕМА of the Highs (turquoise line). As we can see in the illustration below, the price did not touch the turquoise line until the 5th MACD bar. • Wait for the Stochastic on the 15-Min chart to indicate an overbought situation (value ≥80). • Wait for the Williams’ %R on the 15-Min chart to indicate an overbought situation (value ≥-20). Additional information: If the entry signal occurs at a time when the price is below the 20 period ЕМА of the Closes (black line on the 1-Hr chart) as in the illustration below, this indicates a much stronger trade alert. Entry Rules for Long Positions: • The MACD (1-Hr chart) must have been above the zero line for at least 3 bars. The earliest entry point is the 4th consecutive bar above the zero line. • Wait for the price to touch the 5 period ЕМА of the Lows (maroon line). As we can see in the illustration below, the price did not touch the maroon line until the 4th MACD bar. • Wait for the Stochastic on the 15-Min chart to indicate an oversold situation (value ≤20). 81 • Wait for the Williams’ %R on the 15-Min chart to indicate an oversold situation (value ≤-80). Additional information: If the entry signal occurs at a time when the price is above the 20 period ЕМА of the Closes (black line on the 1-Hr chart) as in the illustration below, this indicates a much stronger trade alert. As you can see, understanding the rules for buy and sell alerts is very easy. 
Exit Strategy This really is very easy. You simply follow the 20 period EMA of the Closes. Keep the remaining position open until a candlestick closes above all three moving averages. Of course, you can always back-up this strategy by using a Trailing Stop Download 5emas template here
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