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Moving Average + SuperTrend Strategy

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### **1. Concept of EMA 200:**
- **EMA 200** is an exponential moving average that represents the average closing price over the last 200 candles. It is widely used to identify the long-term trend.
- If the price is above the EMA 200 line, the market is considered to be in a long-term uptrend.
- If the price is below the EMA 200 line, the market is considered to be in a long-term downtrend.

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### **2. Combining EMA 200 with SuperTrend:**

#### **Indicator Settings:**
1. **EMA 200:**
- Use EMA 200 as the primary reference for identifying the long-term trend.

2. **SuperTrend:**
- Set the **ATR (Average True Range)** period to **10**.
- Set the **Multiplier** to **3**.

#### **How to Use Both Indicators:**
- **EMA 200:** Determines the overall trend (long-term direction).
- **SuperTrend:** Provides precise entry and exit signals based on volatility.

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### **3. Entry and Exit Rules:**

#### **Buy Signal:**
1. The price must be above the EMA 200 line (indicating a long-term uptrend).
2. The SuperTrend indicator must turn **green** (confirming a short-term uptrend).
3. The entry point is when the price breaks above the SuperTrend line.
4. **Stop Loss:**
- Place it below the nearest support level or below the lowest point of the SuperTrend line.
5. **Take Profit:**
- Use a risk-to-reward ratio (e.g., 1:2). For example, if your stop loss is 50 pips, aim for a 100-pip profit.
- Alternatively, target the next significant resistance level.

#### **Sell Signal:**
1. The price must be below the EMA 200 line (indicating a long-term downtrend).
2. The SuperTrend indicator must turn **red** (confirming a short-term downtrend).
3. The entry point is when the price breaks below the SuperTrend line.
4. **Stop Loss:**
- Place it above the nearest resistance level or above the highest point of the SuperTrend line.
5. **Take Profit:**
- Use a risk-to-reward ratio (e.g., 1:2). For example, if your stop loss is 50 pips, aim for a 100-pip profit.
- Alternatively, target the next significant support level.

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### **4. Practical Example on USD/JPY:**

#### **Trend Analysis Using EMA 200:**
- If the price is above the EMA 200 line, the market is in a long-term uptrend.
- If the price is below the EMA 200 line, the market is in a long-term downtrend.

#### **Signal Confirmation Using SuperTrend:**
- If the SuperTrend is green and the price is above the EMA 200, this reinforces a **buy signal**.
- If the SuperTrend is red and the price is below the EMA 200, this reinforces a **sell signal**.

#### **Trade Management:**
- Always place a stop loss carefully to avoid large losses.
- Aim for a minimum risk-to-reward ratio of **1:2** (e.g., risking 50 pips to gain 100 pips).

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### **5. Additional Tips:**

1. **Monitor Economic News:**
- The USD/JPY pair is highly sensitive to economic news such as U.S. Non-Farm Payroll (NFP) data, Bank of Japan monetary policy decisions, and geopolitical events.

2. **Use Additional Indicators:**
- You can add indicators like **RSI** or **MACD** to confirm signals and reduce false signals.

3. **Practice on a Demo Account:**
- Before trading with real money, test the strategy on a demo account to evaluate its performance and ensure it aligns with your trading style.

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### **6. Summary of the Strategy:**
- **EMA 200:** Identifies the long-term trend (uptrend or downtrend).
- **SuperTrend:** Provides precise entry and exit signals based on volatility.
- **Timeframe:** H2 (2-hour).
- **Currency Pair:** USD/JPY.

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### **Conclusion:**
This strategy combines the power of **EMA 200** for long-term trend identification and **SuperTrend** for precise entry and exit signals. When applied to the **H2 timeframe** for the **USD/JPY** pair, it can be highly effective if executed with discipline and proper risk management.

**Final Answer:**
$$
\boxed{\text{The strategy combines EMA 200 for long-term trend analysis and SuperTrend for precise entry/exit signals on the H2 timeframe for USD/JPY.}}
$$

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