8/5/2023 0 Comments Set timer for 15 minutesIn other words, you can easily identify the trend from there.īefore you jump into the 15-minute chart, you should know how to identify the trend in the higher timeframe, namely the daily chart. The 20 EMA is the best moving averages to use in the 15-minute charts because the price follows it most accurately during multi-day trends. If you're into scalping or other short-term strategies, making use of a Moving Average in a 15-minute chart is quite recommended. See Also: The Most Powerful Candlestick Patterns You Should TradeĢ0 EMA Trading Strategy for 15-Minute Chart Place your stop loss a few pips (at least 5-10 pips depends on the time frame you use) below the signal candlestick for a buy trade and above the signal candlestick for a sell trade.If the next candlestick does not activate the order, you need to cancel that pending order. In contrast, in a downtrend market, place your pending sell stop order 1-2 pips below the signal candlestick's Low.If the next candlestick doesn't activate your order, then you should cancel it. In an uptrend market, you should place your buy stop pending order at least 1-2 pips above the High of the signal candlestick.This is the only thing that you should pay attention to because your entry depends on the signal candlestick's Low and High. The candlestick that first touches the 20 EMA after the trend has changed direction is called the signal candlestick.In comparison, if the price is closing below the 20 EMA, then it is a downtrend. When the price is closing above the 20 EMA, then it is an uptrend.The basic principles in the 20 EMA strategy are: While that explains the setup for a Short position, you can also learn about the Long setup very easily because it is exactly the opposite. Once you found the right signal, it would be the right time to open a position. Remember, if the next candlestick still touches the EMA line, then it is not a good signal, so you should look for another one. It refers to the first candlestick that heads back up and touches the EMA line after the price had been steering away from it for some time. You only have to pay attention to one very specific candlestick. See Also: Practical Use of Moving Averages: EMA-20 and EMA-60 Crossover As a trader, you should wait and make use of the moment where the price retests the 20 EMA line. So, the 20 EMA strategy basically acts as the bounce line for candlesticks. This is called a "retest" and it can happen once or a few times before it finally reaches a point where the 20 EMA is broken. If the downtrend is strong, then the 20 EMA will be able to push the price back down. But at some point, you will see that the price will change direction to test the 20 EMA line. ![]() In a downtrend, the price is expected to go down. ![]() However, the strategy is best used when the market is in high volatility and the price is moving fast. The only tool you need is the 20 EMA and it can be used for any currency pairs in any time frame. The main advantage of the 20 EMA trading strategy is that it is very easy to follow even for novice traders. While there are many types of Moving Averages that you can choose, here we will talk about the 20 EMA. Utilizing one of the oldest and simplest trading tools called Moving Averages can be a good start. Instead, you only need an effective strategy. You don't always need a super complicated or professional method to find success in trading. Especially for novice traders, it would be helpful to use a strategy that is simple to execute but powerful enough to gain profits. Without a proper plan, trading might be tougher than it should be and the results can go unexpectedly. One of the most critical matters that every trader must have is a trading strategy. Read further to find out which Moving Average is best used for a 15-minute chart. The Moving Average is one of the simplest yet powerful tools to trade.
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