Moving-Average Crossover (Trend Following) Setup & Indicators Fast EMA: Period 10 Slow EMA: Period 50 Timeframe: H1 or H4 Additional Filter: ATR(14) > 0.0005 for minimum volatility Entry Long: EMA10 crosses EMA50 from below and ATR confirms sufficient trend strength. Short: EMA10 crosses EMA50 from above. Exit & Trailing Stop-Loss: 1.5 × ATR(14) below/above the crossover point. Take-Profit: 2 × risk (Risk/Reward = 1:2) or dynamically with a trailing stop = 1 × ATR. Risk Management Max. risk per trade: 1–2% of account equity. Position size: Choose volume so that SL distance × volume ≤ max. risk. Example chart for the Moving-Average Crossover trend-following setup. Upper panel (Price with EMAs): Yellow line: Closing price (Close) Orange line: EMA10 Red line: EMA50 ▲ Long entry, ▼ Short entry, only if ATR(14) > 0.0005 Lower panel (ATR(14)): Yellow line: ATR(14) Dashed line: Minimum volatility threshold (0.0005) Chart Interpretation Long entry: EMA10 crosses EMA50 from below and ATR(14) is above the threshold. Short entry: EMA10 crosses EMA50 from above with sufficient volatility. Stop-Loss & Take-Profit: Based on 1.5 × ATR below/above the crossover and R/R = 1:2 or ATR-based trailing. This way, you get a visual confirmation of the setup in the H1/H4 context before applying risk management (1–2% per trade, position sizing).
