My Trading Strategy with EMA 34/89 and Price Action

I have always been fascinated by the simplicity of the EMA 34/89 method combined with price action. After many mistakes and burned accounts, I finally mastered this technique that I want to share today.

What are these damn EMAs?

EMA (Exponential Moving Average) gives more weight to recent prices. The EMA 34 shows short trends, while the 89 reveals long ones. It's that simple.

When I use this method in my daily trading, I usually do:

How to apply in practice:

1. Trend Identification

   • Is EMA 34 above 89? I only buy!
   • EMA 34 below 89? Only selling!

2. Entries with Price Action

   • I hope the price returns close to some EMA
   • I look for price action signals (Pin Bar, Inside Bar, Fakey)
   • Example: If the market is rising and forms a Pin Bar near the EMA 34, it's my cue to buy.

3. Operation Management

   • Entry: After confirmation of the candlestick pattern
   • Stop Loss: Below the bottom (purchases) or above the top (sales)
   • Take Profit: Use a risk/return ratio of 1:2 or 1:3

Real example:

In EUR/USD, I saw the EMA 34 above the 89 (uptrend). The price retraced to the EMA 34 and formed a nice Pin Bar. I entered buying, placed a stop below the Pin Bar and a target with a 1:3 ratio. Result? A profitable trade that paid for my weekend beer.

Tips I Learned from Losing Money:

• Do not trade when the market is sideways (Flat EMAs)
• Prefer larger timeframes (H4, D1) to avoid false signals
• Combine these EMAs with price action for confirmation
• Be patient! The market won't run away, but your money will if you act impulsively.

Remember: this strategy is not foolproof! But with practice and discipline, it can be a powerful tool in your trading arsenal.