Lesson 2

EMA Bounce Strategy

FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 EMA Bounce Strategy
The EMA Bounce Strategy is a strategy that seeks to long FX pairs on a strong uptrend
as they bounce off their 50EMA support and shorting FX pairs on a strong downtrend as
they bounce off their 50EMA resistance.

Time frames: M15 optimal

Frequency: 10-15 trades a month
Average Win rate: 50%-60%
Risk to return Ratio: 1: 2
All FX Pairs : GBPUSD, EURUSD, USDJPY, USDCHF, USDCAD
Must use brokers with tight spreads of 1 to 2 pips maximum
 Long Setup Entry Rules
1) FX Pair on an uptrend (Price> 18EMA > 50EMA > 200SMA)
2) 50EMA has been tested at least once to be strong support
3) Higher time frame H1candles on Uptrend (Price>18EMA>50EMA>200SMA)
4) Uptrend wave pattern (Recent swing high is higher than previous swing high,
Recent swing low is higher/equal to previous swing low)
5) Ideally, 50EMA support coincides with a horizontal support level and/or fibonacci
level of 50% or 61.8%

Recent Swing high

50EMA
Previous Swing high

Recent Swing Low

Previous Swing Low

 Long Setup Entry Rules
6) Entry: Buy Limit Order at 50EMA support
7) Stop Loss: Place a Sell Stop Order at least 8 pips below the Entry Price (at least 12 pips for GBP
pairs)
8) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be at least 8-12 pips
9) Target Price: Sell Limit Order 2R above the entry price. The Target price should be below the
recent swing high.

Low Risk Filters

• No major news release within the next 10 candles (i..e 150 mins for M15)

Recent Swing high

Target Price

Previous Swing high 2R

Entry @Recent Swing Low
1R
Stop loss
Previous Swing Low

50EMA
 Long Setup Entry Rules
Uptrend wave pattern (Recent swing high is higher than previous swing
high, recent swing low is higher/equal to previous swing low)?
 Long Setup Entry Rules
Uptrend wave pattern (Recent swing high is higher than previous swing
high, recent swing low is higher/equal to previous swing low)?

Is this a Valid Wave Pattern?

 M15 MA Bounce Long Setup -GBPCHF

Recent swing high

Target Price
GBPCHF 29 Nov Previous swing high
Sell Limit Order 1.3300

18EMA>50EMA>200SMA
1R =38 pips
Entry
Buy Limit Order 1.3262
50EMA recently tested 1R =19 pips
Sell Stop Order 1.3243
Stop Loss

Recent swing low

Previous swing low

50EMA recently tested

 MA Bounce Long Setup- GBPCHF
H1 H1 Must Be Aligned

Sell Limit Order 1.3300 Target Price

GBPCHF 29 Nov
18EMA>50EMA>200SMA Buy Limit Order 1.3262 Entry
Sell Stop Order 1.3243 Stop Loss
 M15 MA Bounce Long Setup- GBP CHF
Target price Reached

Target Price
GBPCHF 29 Nov Sell Limit Order 1.3300

2R =38 pips
Entry
Buy Limit Order 1.3262
1R =19 pips
Sell Stop Order 1.3243
Stop Loss
 M15 MA Bounce Long Setup -EURUSD
Recent swing high

EURUSD 27 Nov
18EMA>50EMA>200MA

Target Price
Sell Limit Order 1.1941
Previous swing high
2R =16 pips

Entry
Buy Limit Order 1.1925

1R =8 pips
Stop Loss
Sell Stop Order 1.1917

50EMA recently tested

Recent swing low
Previous swing low
 MA Bounce Long Setup- EURUSD
H1 H1 Must Be Aligned

EURUSD 27 Nov Target Price

18EMA>50EMA>200MA
Sell Limit Order 1.1941

Entry
Buy Limit Order 1.1925
Stop Loss
Sell Stop Order 1.1917
 M15 MA Bounce Long Setup- EURUSD
Target price Reached

EURUSD 27 Nov

Target Price
Sell Limit Order 1.1941

Entry
Buy Limit Order 1.1925

Stop Loss
Sell Stop Order 1.1917
 MA Bounce Long Setup -USDCHF
M15

Recent swing high

USDCHF 7 Dec Target Price

Sell Limit Order 0.9932

Previous swing high 2R =20 pips

18EMA>50EMA>200MA Entry
Buy Limit Order 0.9912
1R =10 pips
Stop Loss
Sell Stop Order 0.9902

Previous swing low

50EMA recently tested
Recent swing low
 MA Bounce Long Setup- USDCHF
H1 H1 Must Be Aligned

Target Price
18EMA>50EMA>200MA Sell Limit Order 0.9932

Entry
Buy Limit Order 0.9912

Stop Loss
Sell Stop Order 0.9902
 M15 MA Bounce Long Setup- USDCHF
Target price Reached

Target Price
NZDCHF 5 Dec
Sell Limit Order 0.9932
18EMA>50EMA>200MA
Entry
Buy Limit Order 0.9912

Stop Loss
Sell Stop Order 0.9902
 Is This a Valid MA Bounce Long Setup?

Is this a Valid Wave Pattern?

 USD CHF Bounce
Long Setup Live Trade

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 EUR JPY Bounce
Long Setup Live Trade

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Short Setup Entry Rules
1) FX Pair on an downtrend (Price< 18EMA < 50EMA < 200SMA)
2) 50EMA has been tested at least once to be strong resistance
3) Higher time frame H1candles on Downtrend (Price<18EMA<50EMA<200MA)
4) Downtrend wave pattern (Recent swing low is lower than previous swing low,
Recent swing high is lower/equal than previous swing high )
5) Ideally, 50EMA resistance coincides with a horizontal support level and/or fibonacci
level of 50% or 61.8%

Previous
Swing high Recent
Swing high

Previous
Swing Low
Recent
Swing low
 Short Setup Entry Rules
6) Entry: Sell Limit Order at 50EMA resistance
7) Stop Loss: Place a Buy Stop Order at least 8 pips above the Entry Price (at least 12 pips for GBP
pairs)
8) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be at least 8-12 pips
9) Target Price: Buy Limit Order 2R below the entry price. The Target price must be above the
recent swing low.

Low Risk Filters

• No major news release within the next 10 candles (i..e 150 mins for M15)

Previous
Swing high
Stop loss
1R
Entry Recent
Swing high
2R
Previous
Swing Low Target Price
Recent
Swing low
 Short Setup Entry Rules
Downtrend wave pattern (Recent swing high is lower than previous
swing high, recent swing low is lower/equal to previous swing low)
 Short Setup Entry Rules
Downtrend wave pattern (Recent swing high is lower than previous
swing high, recent swing low is lower/equal to previous swing low)

Is this a Valid Wave Pattern?

 M15
MA Bounce Short Setup- NZDJPY

NZDJPY 16 Nov 18EMA<50EMA<200MA

50EMA recently tested
Recent
swing high
Previous
swing high Stop Loss
Buy Stop Order 77.65

Entry 1R =8 pips
Sell Limit Order 77.57

2R =16 pips

Previous
Target Price
swing low Buy Limit Order 77.41

Recent
swing low
 H1 MA Bounce Short Setup-NZDJPY
Ensure H1 is Aligned!

18EMA<50EMA<200MA
NZDJPY 16 Nov

Stop Loss
Buy Stop Order 77.65
Entry
Sell Limit Order 77.57

Target Price
Buy Limit Order 77.41
M15
MA Bounce Short Setup-NZDJPY

NZDJPY 16 Nov 18EMA<50EMA<200MA

Stop Loss
Buy Stop Order 77.65

1R =8 pips
Entry
Sell Limit Order 77.57

2R =16 pips

Target Price
Buy Limit Order 77.41
 M15 MA Bounce Short Setup- NZDUSD

50EMA recently tested 18EMA<50EMA<200MA

NZDUSD 15 Nov
Previous Recent
swing high swing high
Stop Loss
Buy Stop Order 0.6874

1R =8 pips
Entry
Fibo 61.8% Sell Limit Order 0.6866

2R =16 pips

Target Price
Buy Limit Order 0.6850

Previous Recent
swing low swing low
 MA Bounce Short Setup-NZDUSD
Ensure H1 is Aligned!
H1

18EMA<50EMA<200MA

NZDUSD 14 Nov

Stop Loss
Buy Stop Order 0.6874

Entry
Sell Limit Order 0.6866

Target Price
Buy Limit Order 0.6850
M15 MA Bounce Short Setup- NZDUSD
Target price Reached

NZDUSD 15 Nov

Stop Loss
Buy Stop Order 0.6874

1R =8 pips
Entry
Sell Limit Order 0.6866

2R =16 pips

Target Price
Buy Limit Order 0.6850
Is This a Valid MA Bounce Short Setup?
Is This a Valid MA Bounce Short Setup?
 EUR NZD Bounce
Short Setup Live Trade

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 2
MA Bounce Strategy
FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017