Forex : MACD + EMA = Momentum

To trade in forex trading, you have to find the right time to enter or exit a position. Additionally, you must have a mental “steady” when the price target has not been achieved as desired.


You need discipline because it is key to gain Profit in Trading

Impulse is a system designed by Dr. Alexander Elder to be able to identify the appropriate entry point with momentum. Indicators that can measure the momentum in the market will be strong capital for traders.


How to open position

One indicator that can identify market is an indicator of the exponential moving average (EMA)

This indicator serves as a tool to determine the uptrend and downtrend. When EMA appears to rise, then the price will potentially bullish, and when EMA looks down, then the price will move looks bearish.


To measure market momentum, traders can use the histogram moving average convergence divergence (MACD), which is an oscillator that can display the rate of change in the movement of bull and bear. When the slope of MACD histogram rises, then the price will be bullish. When the MACD falls, then the price will move bearish.


This system will issue an open position signal when both indicators move in the same direction.


If the signal from the EMA and MACD histogram moving in the same direction tend to provide the information that the price is moving in an uptrend or downtrend. When the indicator EMA and MACD histogram is moving upwards, then the bullish trend will have a control on the trend, and the uptrend will accelerate. Conversely, when the indicator EMA and MACD histogram falls, then the bearish trend is in control and the downtrend will dominate the market.


The principles above is one way to identify points of open positions on the trade. If the period that you use are on the daily chart, then you should be able to analyze the weekly chart to determine the bullish or bearish. To determine the long-term trend in the market, you can use the 26 EMA on the weekly chart and MACD histogram on the weekly chart.


Having acquired long-term trend, then you can use daily charts you use to follow the direction of trade are visible on the weekly chart.

By using the 13 EMA on the daily charts and MACD histogram 12,26,9, prices will potentially give the signal for the open position.

When the weekly trend is rising, and the signal will be seen in the open position 13 EMA and MACD histogram that appears and gave a buy signal is strong enough and the opportunity you to open a buy position.


Conversely, when the weekly trend is moving down, wait 13 EMA indicator on the daily charts and MACD histogram gives a bearish signal. Momentum like this would be a strong signal to open short positions, and you have to close short positions when the sell signal is lost.


How to Close Positions


Doing forex trading by finding the right moment to open a position when the market is moving is an absolute requirement. As we know that prices move in trends on a weekly walk, and the best movement is the movement which regularly shows the trend of Intra – day strong enough.

As mentioned earlier, once you can identify and open trading positions with a strong enough momentum (daily EMA and MACD histogram are both moving up or down).


You must have the momentum right out of your open positions. Daily MACD histogram is usually (but not always) will give a signal, when the momentum is reversed and started to weaken then the moment to give the information that the positions that are currently open are likely to be shut down. Exit signal will go out when these two indicators move in opposite.


When the weekly trend is moving down and the daily EMA and daily MACD histogram falls, it’s time for you need to get out of long positions that have been opened in advance up to one indicator stops issuing a sell signal.


Exit point requires swift action and the exact moment when a trend is identified apparently soon be nearing an end.