I’ve been experimenting with trading techniques using EMA 34 and EMA 89 combined with Price Action, and I find it quite effective, so I want to share it with you guys.

Basically, EMA (Exponential Moving Average) is a moving average line, but unlike SMA, it gives priority to more recent price data. When using EMA 34 and EMA 89, I usually keep EMA 34 to catch short-term trends (move faster), and EMA 89 to monitor long-term trends (move slower). These two lines, when combined, are very powerful.

Practical application steps:

Step 1 is to identify the trend. If EMA 34 is above EMA 89, the market is in an uptrend, and I only look for buying opportunities. Conversely, if EMA 34 is below, the trend is down, and I only look for selling opportunities. This is very simple but highly effective.

Step 2 is to wait for Price Action. When the price pulls back near EMA 34 or EMA 89, I don’t rush to enter the trade immediately. Instead, I wait for candlestick signals like Pin Bar, Inside Bar, or Fakey to confirm. For example, in an uptrend, if the price touches EMA 34 and forms a bullish Pin Bar, that’s a signal to buy.

Step 3 is to manage the position. The entry point is when the candlestick pattern is confirmed near both EMA 34 and EMA 89. I place the Stop Loss below the low of the signal candle (for a Buy) or above the high (for a Sell). As for Take Profit, I follow a risk-reward ratio like 1:2 or 1:3, or when the price hits a resistance/support zone.

I usually test on EUR/USD or other major pairs. In an uptrend, EMA 34 above EMA 89, price retraces near EMA 34 and forms a bullish Pin Bar, I enter a Buy when the candle closes, placing SL below the Pin Bar’s low, and TP at a 1:3 R:R ratio. This method has helped me avoid many false signals.

Some important notes: Don’t trade when the market is sideways (EMA 34 and EMA 89 are flat and close together). Prioritize trading on higher timeframes like H4 or D1 to avoid noise from lower timeframes. Always combine EMA with Price Action rather than relying on just one indicator.

Honestly, mastering this technique isn’t difficult; it just requires practice in identifying trends, spotting candlestick patterns, and patiently waiting for clear signals. I’ve been using it for a while now and find it quite consistently effective. You can try it on a demo first, get used to it, then switch to a real account.